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Level 3
April 30, 2020
Solved

Charitable Deduction for Restaurant Business

  • April 30, 2020
  • 14 replies
  • 55 views

What advise do you have for restaurant businesses that want to give/donate meals to communities and organizations in needs? Which steps should they take and how can the expenses be deducted as charitable deductions?

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Best answer by advantagepoints

With the inclusion of that fascinating article, are you still wondering if/how it applies to your question?

You mentioned "give/donate meals to communities and organizations in needs" which would be different than, for instance, a Restaurant giving their walk-in food to the local Food Bank rather than see it go wasted.

Do you still have a specific question?


Thank you all.  I've found additional details here.  Much appreciate all your help.

https://www.irs.gov/publications/p526

14 replies

IRonMaN
Level 15
April 30, 2020

Do you mean deducting them as charitable donations in addition to the deductions they are already taking for food and labor costs or instead of taking their deduction for food and labor costs?

Slava Ukraini!
abctax55
Level 15
April 30, 2020

In case Jeff's subtle point is missed...there ISN'T an additional deduction over/above the amounts already included in expenses as payroll, purchases, supplies, etc.  

IF you want to track the amounts for management purposes and so that your COGS percentages are still in line with normal operations, you can move the amounts from their normal categories to charitable.  I don't know many entities that do so.

HumanKind... Be Both
Level 3
April 30, 2020

Not "in addition to" but "instead of"