Tenn. Comp. R. & Regs. 1320-06-01-.20

Current through September 10, 2024

Section 1320-06-01-.20 - ACTUAL CHARITABLE CONTRIBUTIONS

In determining net earnings for the purpose of computing the excise tax, T.C.A. § 67-4-2006 requires the charitable contributions deduction claimed under Section 170 of the Internal Revenue Code to be added to federal taxable income; whereas, § 67-4-2006 permits a deduction for actual charitable contributions made by the taxpayer during the fiscal year. The term "actual charitable contributions" means all bona fide contributions expensed and paid in a given year without regard to any percentage as required under federal law. The same criteria used for federal purposes in determining whether or not a contribution is a bona fide contribution is used by this state; however, only the book basis of property donated to charity is allowed as a deduction in determining net earnings for the purpose of computing the excise tax.

Tenn. Comp. R. & Regs. 1320-06-01-.20

Original rule certified June 7, 1974. Amendment filed August 13, 1974; effective September 12, 1974. Repealed and refiled July 22, 1977; effective August 22, 1977. Amendment filed November 6, 1984; effective December 6, 1984. Amendments filed June 28, 2016; effective 9/26/2016.

Authority: T.C.A. §§67-1-102(a), 67-1-102, 67-4-805, 67-4-2006, and 67-4-2108.