California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 7 - Net Income › Article 1 - Deductions › Section 24357-1 - Charitable, Etc., Contributions and Gifts; Allowance of Deduction

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In General.
(1) General rule. Any charitable contribution
					 (as defined in Section
					 24359) actually paid during the
					 income year is allowable as a deduction in computing net income, regardless of
					 the method of accounting employed or when pledged. In addition, contributions
					 by a bank or corporation may under certain circumstances be deductible even
					 though not paid during the income year (See Reg. 24357-2(b)). The deduction is
					 subject to the limitations of Section
					 24358 (See Reg. 24357-2) and is
					 subject to verification by the Franchise Tax Board.
(2) Information required in support of
					 deductions for income years beginning before January 1, 1964. In connection
					 with claims for deductions for charitable contributions paid in income years
					 beginning before January 1, 1964, taxpayers shall state in their tax returns
					 the name and address of each organization to which a contribution was made and
					 the amount and approximate date of the actual payment of each contribution. Any
					 deduction for a charitable contribution must be substantiated, when required by
					 the Franchise Tax Board, by a statement from the organization to which the
					 contribution was made indicating whether the organization is a domestic
					 organization, the name and address of the contributor, the amount of the
					 contribution, and the date of its actual payment, and by such other information
					 as the Franchise Tax Board may deem necessary.
(3) Information required in support of
					 deductions for income years beginning after December 31, 1963.
(A) In general. In connection with claims for
					 deductions for charitable contributions paid in income years beginning after
					 December 31, 1963, taxpayers shall state in their tax returns the name of each
					 organization to which a contribution was made and the amount and date of the
					 actual payment of each contribution. If a contribution is made in property
					 other than money, the taxpayer shall state the kind of property contributed
					 (for example, used clothing, paintings, securities) and shall state the method
					 utilized in determining the fair market value of the property at the time the
					 contribution was made. In any case in which a taxpayer makes numerous cash
					 contributions to an organization during the income year, the taxpayer may state
					 the total cash payments made to such organization during the income year in
					 lieu of listing each cash contribution and the date of payment.
(B) Statement from donee organization. Any
					 deduction for a charitable contribution must be substantiated, when required by
					 the Franchise Tax Board, by a statement from the organization to which the
					 contribution was made indicating whether the organization is a domestic
					 organization, the name and address of the contributor, the amount of the
					 contribution, the date of actual receipt of the contribution, and such other
					 information as the Franchise Tax Board may deem necessary. If the contribution
					 includes an item of property (other than money or securities which are
					 regularly traded on a stock exchange or in an over-the-counter market) which
					 the donee deems to have a fair market value in excess of $200 at the time of
					 receipt, such statement shall also indicate for each such item its location if
					 retained by the organization, the amount received by the organization on any
					 sale of the property and the date of sale, or in case of other disposition of
					 the property, the method of disposition.