Can I give out tax credit slips to those that donate to my shop so that they can write it off on their taxes? And how would that affect the taxes I have to pay on the business?
2006-09-29 03:26:56 · 4 answers · asked by Cocoabutta98 4 in Business & Finance ➔ Taxes ➔ United States
I will be making a profit off of what I sell out of the shop. So can someone still write it off on their taxes as a donation?
2006-09-29 03:41:08 · update #1
Unless you're a 501(c)(3) designated charity or otherwise recognized charity, donated items are not tax deductible. What you are describing is a second-hand store. You want people to give you things that you can sell for profit. Only if it was for money that goes into a charitable organization or program would it be charity. You want it for your own pocket.
Also, consignment in and of itself is either you selling an item for someone and giving them the money and keeping a percentage, or directly buying items you sell for profit. None of this is charity nor tax deductible.
2006-09-29 05:06:31 · answer #1 · answered by misslabeled 7 · 3⤊ 1⤋
You are not a non-profit so your "donor" can't deduct their donations.
However, the base of the items is $0, so you will pay tax on the whole proceed when you sell.
2006-09-29 06:20:23 · answer #2 · answered by JQT 6 · 2⤊ 1⤋
You will need to call a CPA or call a local Goodwill or habitat for humanity store in your area.
2006-09-29 04:57:27 · answer #3 · answered by littlebettycrocker 4 · 0⤊ 0⤋
they can write it off if you are a non profit organization only.
2006-09-29 03:34:08 · answer #4 · answered by Crazymom 6 · 0⤊ 0⤋