On December 30,2008,Debbie,a sole proprietor,pledged to make a $10,000 charitable contribution on or before January 15,2009.Green Corporation,an accrual basis corporation,made a similar pledge on the same date,and the contribution was authorized by Green's board of directors.Debbie and Green Corporation,both calendar year taxpayers,can deduct these contributions in 2008.

Question

Quizplus · Accepted Answer

Individuals cannot deduct contributions until they are actually made.Therefore,Debbie must wait until 2009 to deduct the contribution,assuming she honors the pledge.Green Corporation,whose board of directors authorized the contribution in 2008,can deduct the contribution in 2008,assuming the pledge is paid on or before March 15,2008.

On December 30,2008,Debbie,a Sole Proprietor,pledged to Make a $10,000 Charitable