The Coronavirus Aid, Relief, and Economic Security (CARES) Act modifies a tax deduction for the donation of food inventory to a charitable organization. See if you qualify.

To whom can the donation be contributed?

A donation to a charitable organization that will use it to care for the ill, needy or infants is deductible.

How much is the deduction?

The donation is deductible in an amount up to the basis plus half the gain that would be realized on the sale of the food. This is not to exceed twice the basis.

Can a c corp claim the deduction?

Yes, in the case of a C corporation, the deduction previously could not exceed 15% of aggregate net income of the taxpayer for that tax year from all trades or businesses from which those contributions were made, computed without regard to the taxpayer's charitable deductions for the year.

What did the CARES Act change?

For 2020, the CARES Act changes the taxable income limits from 15% to 25%.

Questions? Contact us. We’re here for you; visit our Coronavirus Resource Center.