Donations

2 replies
40 views

Hi,

If the client provides a 500 dollars discount to school for its products. And it is tax deductible donation. Should I put it in 50% limitation Noncash contribution?

Thank you!

Lacerte Tax

This topic has been closed for replies.

qbteachmtAnswer

Level 15

To quote a favorite participant to this community: You cannot write off what you did not write on. That's why you need to claim the full gross income, if you intend to claim the missing $500 as a write off, as well. Forfeiting a sale or selling at a lower price is not donation. In business, if you already took a credit for that cost, you do not also get a donation expense.

Don't yell at us; we're volunteers

abctax55

Level 15

I'd put it as a cash donation..right after I included it in income though. And be sure to consider the impact of that on self-employment tax.

If you don't include it in income, it isn't a donation. It's foregone income - with no tax consequences.

HumanKind... Be Both

qbteachmtAnswer

Level 15

To quote a favorite participant to this community: You cannot write off what you did not write on. That's why you need to claim the full gross income, if you intend to claim the missing $500 as a write off, as well. Forfeiting a sale or selling at a lower price is not donation. In business, if you already took a credit for that cost, you do not also get a donation expense.

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO