Or does it not matter when it comes to tax time? The other option would be to donate personally through my personal accounts.
2007-04-06 15:40:19 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Well, it depends on your tax situation. Ask your tax professional when doing your taxes where you need that credit.
Good Luck!
2007-04-06 15:43:57 · answer #1 · answered by Miss Know It All 6 · 2⤊ 3⤋
It does not matter. Whether you make the donation from the S-Corp or you make it personally, has the exact same tax effect.
S-Corporation disbursements of this nature, flow to the Charitable Contribution line of Form K-1. Charitable Contributions are distributed
from the S-Corporation as a personal expense, not a business deduction.
2007-04-07 09:34:52 · answer #2 · answered by bold4bs 4 · 1⤊ 0⤋
It really just depends on your specific situation. Are you able to itemize your deductions on your personal tax return? If so, it may be more beneficial to donate using a personal check. If you don't itemize, it would definitely be better to contribute through your S-Corp. Otherwise, you wouldn't get the tax deduction for it.
2007-04-06 23:54:45 · answer #3 · answered by Fool in the Rain 6 · 0⤊ 2⤋
S-Corp donations are not deductible against the S-Corp income. They flow through to the owner's Schedule A.
So....it really makes no difference how you do it.
2007-04-07 09:21:30 · answer #4 · answered by Wayne Z 7 · 2⤊ 0⤋