Hey guys,
I was worndering how much can you write of as a business when you donate stuff.
How much you can write off charity?
I 'm donating some stuff from our business that won't sell to salvation army and we gonna take it as a loss or write off as donations.
I just want to make sure there is limit when you claim.
thanks
2007-07-30 22:40:05 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
this is in california, USA
2007-07-30 22:40:28 · update #1
You got a couple of choices, run it through cost of goods sold by decreasing ending inventory, charge it off to advertising, or if you do want to report it as charitable contribution if it's an s-corp it will pass through separately on the K-1 to the shareholders, and if it's a c-corp it will be limited to 10% of profit before the charitable contribution, and the unused excess will be carried forward up to 5 years.
2007-07-31 01:55:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It gets run through "Cost of Goods Sold" when you adjust your current inventory or take an end of year inventory.
You don't get a separate deduction for it.
2007-07-31 08:52:59 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋