Why is my non-cash donation listed on my balance sheet (M-1) as an expense recorded on books this year. Non-cash is not recorded on my books just regular donations?

Forum|Forum|3 years ago
January 12, 2023
2 replies
14 views

I can't balance my balance sheet because it is doing that

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abctax55

Level 15

What was donated?

What was the offset for the journal entry recording the donation in the books/on the Trial Balance?

HumanKind... Be Both

A

ARounsAuthor

Level 2

It doesn't matter what was donated - it was a non-cash donation. I didn't have enough income this year to use my donations, so they were correctly listed on the balance sheet as expenses on books this year not deducted on this return. However, the $300 non-cash donation was also added to that number. That throws my balance sheet off by $300. This seems to be a software problem?

abctax55

Level 15

Nope... not a software problem

Again I ask.... what was the offset used to record this non-cash contribution on the books of the Corp?

Answer that, and adjust the balance sheet accordingly.

HumanKind... Be Both

qbteachmt

Level 15

"It doesn't matter what was donated"

Yes it does. A business donating inventory, vs Food, vs an individual donating a vehicle or appreciated stock, all matters. You never told us which entity type and which form you are working with.

Don't yell at us; we're volunteers

A

ARounsAuthor

Level 2

This is a corporation return and I am trying to balance the balance sheet. We donated $300 worth of hay for rodeo livestock and received a receipt for that. This was hay that we raised so there is no "cash" income on this.

sjrcpa

Level 15

Are you sure you can even get a charitable contribution deduction for it? Wouldn't it be ordinary income if you sold it?

The more I know the more I don’t know.

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