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The board of directors for Oak Corporation authorized a charitable contribution to a qualifying nonprofit organization....

The board of directors for Oak Corporation authorized a charitable contribution to a qualifying nonprofit organization. However, the contribution was not actually made before the end of the tax year. Under what circumstances could the company still take a current-year deduction for this contribution?..

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Expert Solution

If the company follows accrual-based accounting policy, then the expense can be recognized in the current year on accrual basis. However, the actual cash payment can be delayed but must be made before filing the return to get the tax benefit.

jeff jeffy answered 2 years ago
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