Heron Corporation, a calendar year C corporation, had an excess charitable contribution for 2010 of $5,000. In 2011, Heron made a further charitable contribution of $20,000. Heron's 2011 deduction is limited to $15,000 (10% of taxable income). The current year's contribution must be applied first against the $15,000 limitation.

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This is in accordance with the rules for excess charitable contributions for C corporations, where the current year's contribution is first applied against the previous year's limitation before being applied against the current year's limitation.

Heron Corporation, a Calendar Year C Corporation, Had an Excess