Our C corp made a small charitable gift in 2026. Can we use the old deduction rules without checking the new floor?
For tax years beginning after 2025, the ordinary C-corporation charitable-deduction framework includes a 1% taxable-income floor as well as the 10%…
By AE Tax Advisors Team · Updated October 29, 2026
For tax years beginning after 2025, the ordinary C-corporation charitable-deduction framework includes a 1% taxable-income floor as well as the 10% ceiling, subject to applicable exceptions. Amounts below the floor do not automatically receive an unrestricted carryforward. The new floor must be coordinated with the specific statutory carryover rules.
A specific business-owner situation
A calendar-year corporation makes a modest cash gift in 2026 and applies only its older 10% ceiling worksheet. That can overstate the current deduction or create an unsupported carryover.
Illustrative example, not a client result.
What to establish before filing
- Calculate the statutory taxable-income base.
- Apply the floor ceiling and exceptions.
- Track disallowed amounts under the actual carryover provision.
Which fact changes the answer?
The statute permits floor-related carryforward only in specified circumstances involving the ceiling. A small isolated gift can differ from a year exceeding the ceiling.
A mistake to avoid
Do not assume every below-floor contribution can simply be deducted next year.
Records that support the decision
- Gift records.
- Taxable-income calculation.
- Current and historical carryover schedules.
The decision to document
Update the corporation's deduction workpaper for its actual tax-year start date before claiming the gift or carrying it forward.
Business-owner tax planning and preparation scope · Discuss advisory scope with AE
Related questions
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Sources and editorial context
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.