CCA 200927034: Corporate partner may claim an enhanced deduction for partnership donations

Number

200927034

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Charitable Contributions; Food ISP - Contributions of Food Inventory to a Charitable Organization

Topics

Partnerships Income and deductions

Code sections

§ 702, § 170

Ruling dated

May 12, 2009

Publicly released

July 2, 2009

Source

View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

View official IRS release (PDF)

Plain-English summary

Chief Counsel considered whether a C corporation partner could use the enhanced charitable-contribution deduction in section 170(e)(3) for a partnership donation. The advice explains that partnership tax rules treat partners as having made their respective shares of the contribution themselves. It therefore permits the corporate partner to claim the enhanced deduction for its distributive share if the contribution otherwise qualifies under section 170(e)(3). The email reports finding nothing in that provision’s legislative history that would exclude C corporation partners.

Ruling snapshot

Question: Can a C corporation partner use section 170(e)(3) for its share of a partnership’s qualifying charitable contribution?
Outcome: Advice given: the enhanced deduction is available if the contribution otherwise qualifies
Key authorities: IRC §§ 170(e)(3), 702; Subchapter K

Full text (IRS public release)

ID: CCA-513114-09 Number: 200927034
Office: ----------------
Release Date: 7/2/2009

UILC: 702.01-02, 170.02-01

From:
Sent: Tuesday, May 12, 2009 2:33 PM
To:
Cc:
Subject: § 170(e)(3) – Contribution by Corporate Partner

Per our discussion earlier today, it is the view of -----------that Subchapter K provides that charitable contributions are to be taken into account by partners as if they themselves made the contributions. -----------found nothing in the legislative history of section 170(e)(3) that indicates it would not apply to C corporation partners of a partnership, and thus concurs with the views of ----
----------- Therefore, a C corporation that is a partner in a partnership can take the enhanced deduction (if the charitable contribution is otherwise a qualified contribution as provided in section 170(e)(3)) for a charitable contribution made by the partnership as, under Subchapter K, C corporation is treated as though C corporation actually made its distributive share of the contribution.

Please feel free to contact --------------------at ---------------------, or myself if you have any further questions.

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