Charitable Contributions

Charitable Contributions
Name
TAX 650 Module Seven Scenario
Institution
Date
Describe how a business charitable contribution is treated for tax purposes if the business owner is:A sole proprietorA 100% corporate shareholderA partner in a partnershipA 100% S corporation shareholderBe sure to provide an example of a requirement of a qualified charitable contribution. Also, provide an example of how the different rules might affect a decision to make a charitable contribution.
A sole proprietor
“A charitable contribution is defined as a gift of property made to a qualified organization” (Maloney et al., 2021). A sole proprietor owns an unincorporated business by themselves. Business taxes for a sole proprietor are filed on Schedule C of Form 1040. The business does not report separate charitable contributions as an individual deducts contributions on the personal part of Schedule A. That means you must be able to itemize the deductions to take them. In other words, a sole proprietor writes off charity dedications as a person and not business.
 A 100% corporate shareholder
In the case of a 100% corporate shareholder, the charitable contributions made by a shareholder are deductible from their personal income and itemized when the deductions exceed the standard deductions. There are limitations of charitable contribution deduction based on the adjusted gross income (AGI)
 A partner in a part...