If a Corporation's Charitable Contributions Exceed the Deduction Limitation in a Particular

question 67

Multiple Choice

If a corporation's charitable contributions exceed the deduction limitation in a particular year, the excess

• A)is not deductible in any future year.
• B)becomes a carryover to a maximum of five succeeding years.
• C)may be carried back to the third preceding year.
• D)is carried over indefinitely.

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Definitions:

Legal

Pertaining to the law or the legal system, encompassing various legal matters, processes, and institutions.

Direct Financing Lease

A leasing arrangement where the lessor purchases an asset and leases it to the lessee, effectively acting as a financier by not transferring ownership.

Operating Lease

An agreement permitting the utilization of a property without transferring ownership rights to it.

Lessor

The party in a lease agreement that owns the asset and grants the lessee the right to use the asset in return for lease payments.