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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12034
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Where do I report the charitable contributions on the

Customer Question

Where do I report the charitable contributions on the Florida Return F-1120? Is there a limit on the charity contribution that can be reported on the F-1120. Overview: The company is a corporation that filed a Federal Form 1120 and has taxable income along
with charitable contributions that were deducted on the federal return.
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

If you conduct all of your business in Florida, you must enter the Florida charitable contribution carryover on Schedule II, Line 5. Alternatively, If you are doing business outside Florida, you must enter zero (0)
on Schedule II, Lines 5.

Some more explanation to Line 5.

Columns (a) and (b). Enter the amount of excess charitable contributions, determined under s. 170(d)(2), IRC, carried forward and deducted in computing federal taxable income for the taxable year.

So far as limits of charitable contributions go, You may deduct a charitable contribution made to, or for the use of, any of the following organizations that otherwise are qualified under section 170(c) of the Internal Revenue Code:

The limits are -- You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

You can find a more comprehensive discussion of these rules in Publication 526, Charitable Contributions, and Publication 561, Determining the Value of Donated Property in case of Non-cash contributions.

I am sure this would help. I wish you good luck.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
You mentioned itemized deductions which makes me think this applies to an individual tax return. My question pertains to a corporate Florida tax return that filed a Federal Form 1120. I just wanted to confirm if there was percentage of contribution that will be disallowed on the Florida tax return. If so, what is the percentage?
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome again.

No no such percentages would apply in this circumstance.

I am sure this would help. I wish you good luck.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
The Charitable deduction is already included in the Federal Taxable Income on line 30 of the Federal Form 1120 which is carried over to line 1 of the FL Return F-1120. So, do I need to add back any contributions that are not allowed or all of the contributions allowed? In other words, is there a limit on the contributions that can be taken?
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome again. Thank you for your reply.

Yes, you will have to add back. You will add back all those contributions that do not qualify while filing federal returns.

I hope this helps... Let me know if you need further help without any hesitation.

Warm Regards,

Customer: replied 1 year ago.
When you say the contributions that do not qualify, where can I find the regs. to determine what's qualified or not?
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome again. Thanks for your revert.

I am afraid I am not able to get to the core of your question. I believe, rather than failing to resolve your query to your utmost satisfaction, I should opt out and see if someone else can help you with.

I am opting out. Your satisfaction is of utmost importance to us. I wish you good luck.

Warm Regards,

Expert:  Lane replied 1 year ago.

If you took the federal deduction, then this would already be a part of what flows to the F-1120

...

Then there can be adjustments, depending on whether you do all of your business in Florida or not

...

Note that line 1 of the F-1120 is Federal taxable income

...

Then on line 5 you have subtractions from that

...

Florida allows based on using federal excess contribution carryovers

...

The excess contribution deductions may not create or increase a net operating loss for Florida.

...

The Florida excess contribution deduction is the lesser of:

• the federal excess contribution limitation apportioned to Florida in the current year or

• the Florida excess contribution carryover.

...

To support a deduction, you must attach a schedule showing how you computed the deduction:

• Year(s) of federal excess contributions,

• Actual contributions made,

• Federal contribution limitation,

• Amount of excess contributions,

• Florida apportionment fraction for the taxable year(s),

• Apportioned excess contribution to be carried over, and

• Amount of the carryover(s) previously deducted.

...

Any unused federal limitation must be apportioned as well. If you conduct all of your business in Florida, you must enter the Florida excess charitable contribution carryover on Schedule II, Line 5.

...

If you are doing business outside Florida, you must enter zero (0) on Schedule II, Lines 5.

...

You must enter the Florida portion of your excess charitable contribution carryover on Schedule IV, Line 6.

...