Discussion:Donations to C Corp taxable ?
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Discussion Forum Index --> Tax Questions --> Donations to C Corp taxable ?
| 21 December 2005 | |
| A donation to a club which is a C Corp has been posted directly to APIC. I help out at this club and saw this transaction and wondered as to its correctness. The club was a not for profit organization that now pays taxes as it now does a catering business to sustain itself. | |
| December 21, 2005 | |
| If the club was a non-profit then it should still file a 990 for its exempt activities and a 990-T to report the taxable income. Donations would still then go to "direct public contributions" not APIC.
I suppose if it has officially lost its exempt status then the "donation" would go to other revenue, unless the "donation" came from a shareholder. | |
| 15 January 2006 | |
| A contribution to capital is exempt from taxation -- even if the contribution came from non-shareholders. | |
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