Contact UsAs a small business owner, what are the IRS rules about charitable giving from my business?
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Tax Professional Answers
John Stancil
The answer depends on the legal form of your business. If you are a sole proprietor, filing a Schedule C, any charitable contributions are considered as coming from you personally and not from the business. Therefore, they would be deducted on Schedule A.
If you are a partnership or S corporation, the charitable contributions would flow through the business and be reported on the K-1 for you to deduct on Schedule A of your 1040. If you are a corporation, you are limited to deducting 10% of your taxable income.
In some cases, you may be able to treat at least a portion of the contribution as advertising, if you received an ad in a program, or other such recognition.
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515 weeks ago
If you are a partnership or S corporation, the charitable contributions would flow through the business and be reported on the K-1 for you to deduct on Schedule A of your 1040. If you are a corporation, you are limited to deducting 10% of your taxable income.
In some cases, you may be able to treat at least a portion of the contribution as advertising, if you received an ad in a program, or other such recognition.