The following rules apply if your contribution is made by a corporation, these rules apply:
If you have a controlling interest in the corporation and the property has been held for more than one year, the corporation can deduct up to ten percent (10.00%) of the net profit of the corporation.
Excess contribution amounts can be carried forward up to five years. The fair market value here must be reduced by the amount of accumulate depreciation.
If the corporate has elected "Subchapter S" status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return.
Partnerships, S-Corporations and Limited Liability Companies
The following rules apply if your contribution is being made by a partnership, S-Corporation or limited liability company:
The corporation may not claim a deduction for the property donating. Rather, the contribution passes to the individual shareholders on a pro-rated based on their percent ownership in the S corporation. The shareholder can claim this deduction on their individual tax return. The same limits and carry forward rules will apply.
Partnerships and limited liability company contribution rules are the same as an S corporation with one exception the partners or member can claim a deduction even if they have no basis in the partnership or limited liability company.
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* Please consult your CPA/Attorney for your specific tax benefit.
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