Can a for profit corp give all annual profit away to legally reg'd non profits in order to not pay taxes?

Question

Another way to ask this question might be, is there a maximum amount of tax deductible donations that a corporation can make?

Answer 1

No you cannot get a deduction for all of your profits if you give them away.  A corporation is limited to deducting 10% of its taxable income as contributions.  If it donates more than that, it carries over to the future, for up to five years.

Answer 2

Do you mean the 1120 Corporate Income tax? There are lots of ways (even better than giving the profits away) of spending the profit on business improvements and expansion. See a good accountant.

If you mean the 941 taxes, there is no way to legally avoid them.

Answer 3

Bob F. is correct in regards to a C corporation.   If the entity is an S corporation, charitable contributions are not deductible at all.  Rather, S corporation contributions are separately stated items which are taken as itemized deductions (and subject to the appropriate AGI limitations) on the shareholder's 1040.

Answer 4

Are you talking about an S Corporation?

The answer is different if you are.