Corporate Contributions

. How K-1 Donations Work When a partnership or S-Corp makes a charitable donation, that donation "passes through" to you and is reported on your personal Schedule A (Form 1040). The Code: Box 13 (Code A) on Form 1065 or Box 12 (Code A) on Form 1120-S generally refers to cash contributions, which are subject to a maximum deduction of 60% of your total AGI. Aggregation: This 60% limit is not per K-1; it is per taxpayer. You must aggregate all donations from all K-1s plus any personal donations you made directly. 2. "60% K-1 / 40% Company" Myth Combined Limitation: If you have donations from K-1 Company A and K-1 Company B, all of those donations are added together, and the total deduction is limited to 60% of your personal AGI. Total Donations: If your total donations (K-1s + personal) exceed 60% of your AGI, you cannot take the full deduction in the current year. However, you can carry forward the excess amount for up to five years. 3. Key Distinctions Individuals vs. Corporations: If you are a partner (individual) in a partnership, the 60% AGI rule applies to you. If you are asking about a C-Corporation, that entity has different, generally lower, limitations (usually 25% of taxable income for 2020-2021, and returning to 10% afterwards). Qualified Contributions: Temporary rules (2020-2021) allowed for 100% deduction of AGI for certain cash contributions, but standard, non-emergency rules generally cap the deduction at 60% of AGI. 2026 Change: Starting in 2026, a new 0.5% AGI "floor" applies to itemizers, meaning you can only deduct the portion of your total donations that exceeds 0.5% of your AGI. Disclaimer: Tax rules regarding charitable donations and pass-through entities are complex. It is highly recommended to consult a tax professional to calculate your specific AGI limitations.