C Corp: Charity, NOL & DRD Deduction

Question 1

What is the limitation for Charitable Deductions?

Answer 1

10% of ATI

Question 2

What is the carry forward period for charitable deductions in excess of 10% of ATI?

Answer 2

5 years

Question 3

What is the carry forward period for NOLs?

Answer 3

NOL’s can be carried forward forever but they are limited to 80% of the taxable income for the year in which it is carried

Question 4

What are the thresholds and percentages of the DRD?

Answer 4

Dividends received deduction:

0-19% ownership = 50%
20- 79% ownership = 65%
> 80% ownership = 100%