Richey May’s Inside the One Big Beautiful Bill Act video series is designed to help mortgage lenders and other industry-affiliated businesses understand what this sweeping legislation means in practice, not just in theory. Hosted by Kenny Burch, Director, Mortgage Banking Tax, the series features focused conversations with experts from Richey May’s Mortgage Banking Tax team, each examining a specific provision of the Act and its implications.
In this episode, Kenny is joined by Caira Liebhart, Senior Tax Associate, to discuss changes to charitable contribution deductions for C corporations. While charitable giving has long offered tax benefits, the One Big Beautiful Bill Act introduces new limitations that mortgage lenders structured as C corporations will need to factor in to both tax planning and philanthropic strategies.
Key Takeaways from the Episode
- A new minimum threshold now applies: C corporations must exceed a 1% charitable contribution floor before any deduction is allowed, changing how smaller or routine donations are treated.
- The 10% deduction cap remains in place: While the overall ceiling did not change, the interaction between the new floor and the existing limit affects how much can be deducted in a given year.
- Carryforward rules still matter but work differently: Contributions limited by the new rules may be carried forward, though the mechanics are more nuanced than under prior law.
- Timing and contribution strategy are more important: Mortgage lenders may need to rethink how and when charitable contributions are made to avoid losing deductions under the new threshold.
- Detailed calculations drive outcomes: The impact of the new rules depends on taxable income levels and contribution amounts, making careful modeling essential.
Together, these changes mean charitable giving decisions for C corporations now carry added tax complexity and require more intentional planning than before.
Watch the full episode below to hear Kenny and Caira walk through how the new charitable deduction limitations work for C corporations, including detailed breakdowns and practical planning considerations.
Continue the Conversation
This episode is part of the Inside the One Big Beautiful Bill Act series, which explores additional provisions shaping the mortgage banking tax landscape. Visit the series page to watch other episodes and stay current as new guidance continues to emerge.
If you have questions about how charitable contribution deductions or any aspect of the One Big Beautiful Bill Act may impact your organization, the Richey May Mortgage Banking Tax team is available to help.
