Q: Can S-corporations make charitable contributions? Does the same 10% of income limit apply that corporations have? Melissa A: S-corporations can make charitable contributions. Like all other items of income and expense, it flows through to the S-corp owners, where it gets populated as an itemized charitable contribution on the Schedule A. There's a general limit that corporations have that restricts their charitable deduction to 10% of their taxable income. Anything left over must roll forward. That rule does not apply to S-corporations. The full deduction can be claimed, and it's up to the shareholder-level limits from that point forward.

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