Question

GenerUs Inc.'s board of directors approved a charitable cash contribution to FoodBank, a qualified non-profit organization, in November of 2018. GenerUs made the payment to FoodBank on February 2, 2019. GenerUs Inc. (a calendar-year corporation) may claim a deduction for the contribution on its 2018 tax return.

a) True
b) False

Answer 1

Yes, GenerUs Inc. may claim a deduction for the charitable contribution on its 2018 tax return.

Step-by-step explanation:

The answer is True. According to the IRS, a cash contribution made by a calendar-year corporation in November is considered to be made in the same tax year if it is paid by the 15th day of the 3rd month following the end of that tax year. In this case, GenerUs Inc. made the payment to FoodBank on February 2, 2019, which falls within the allowed time frame for claiming the deduction on its 2018 tax return.