A cash basis corporation donates stock held for two years

A cash basis corporation donates stock held for two years as an investment worth $25,000 that has a basis of $10,000 to a valid charity in January of year 2. The board of directors had approved the contribution in December of year 1.

1) Generally, ignoring any limitations, can a corporation deduct a contribution to charity, yes or no

2) If the answer to the previous question is yes, using the facts above in what year can can the corporation deduct the contribution

3) If the corporation was an accrual basis taxpayer, what year would the corporation be able to take the deduction

4) If the contribution can be deducted, ignoring any limitations, how much of the contribution can be deducted

5) If the investment had been held for 8 months what amount would otherwise be deductible

 

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