Partners and S Corporation Shareholders
(a)Partners . Massachusetts generally follows the federal…#
(a) Partners . Massachusetts generally follows the federal income tax treatment of partnerships and their partners under Code §§ 701 through 761. See M.G.L. c. 62, § 17. Code § 703(a)(2)(C) provides that the taxable income of a partnership is computed in the same manner as in the case of an individual except that the deduction for charitable contributions provided in Code § 170 is not allowed to the partnership. Instead, under Code § 702(a)(4) each partner takes into account separately the partner's distributive share of the partnership's charitable contributions.
(b)S Corporation Shareholders . Massachusetts generally…#
(b) S Corporation Shareholders . Massachusetts generally follows the federal income tax treatment of S corporations and their shareholders under Code §§ 1361 through 1368. See M.G.L. c. 62, § 17A. Code § 1363(b)(2) provides that the taxable income of an S corporation is computed in the same manner as in the case of an individual, except that the deductions referred to in Code § 703(a)(2), including the deduction for charitable contributions provided in Code § 170, is not allowed to the S corporation. Instead, under Code § 1366(a)(1)(B) each S corporation shareholder takes into account separately the shareholder’s pro rata share of the S corporation’s charitable contributions.