Knowing what you can and can’t deduct from your taxes will help you save money, and it will give you a better idea of your business’s financial portfolio. Donating to charity is a selfless deed that helps the community, and sometimes you can deduct your donations. Keep reading to see if your small business can deduct charitable donations.
Donation Versus Advertisement
Donating to a charitable cause is a noble deed, and it can help a great deal of people who are in need. As a business owner, though, you still must consider your finances. If you want to donate to a charity and deduct it from your taxes, you need to be sure that your donation is in no way seen as an advertisement for your company. An advertisement classifies on a different level than a donation because there is an incentive for your business.
Time and Expertise
In some cases, you might make a donation in the form of your services. Unfortunately, when you spend your time or use your expertise for a charitable cause, it doesn’t always qualify as something you can deduct from your taxes. The good news is that there are certain aspects of the donation that you might be able to deduct. This includes the money you spent on gas to get to and from the venue, along with the money you spent to acquire any materials you used for the donation.
There are certain situations where you can deduct charitable donations from your taxes, but you need to file the right forms to be eligible. Make sure you hold onto an acknowledgement letter from the organization you donate to before you file your tax return.
If you have any questions regarding bookkeeping in Tucson, don’t forget to call Kalil & Associates at (520) 628-4264. Our accountants can help you keep your finances in order so you can focus on your business. Give us a call or visit our website to learn about our services.