One of the great things about small businesses is the relationship between the businesses and their communities. Small businesses can do more than provide their communities with valuable goods and services. When funds permit, many small business owners choose to pass along some of their good fortune in the form of charitable contributions.
Small business owners should keep in mind is that it doesn’t diminish the generosity behind the gift to consider whether or not they might be able to claim those contributions as deductions on your tax return.
There are guidelines regulating what can and cannot be deducted as a charitable contribution. Whether or not you can claim a contribution can depend on:
- The type of charitable organization receiving the donation
- The type of donation, such as cash, services or goods
- When the donation is paid off – all in one tax year or across several
- If a detailed letter of acknowledgement was received for the donation
- If any goods or services were received in return for the donation
There are also limits to the amount of the donations that can be claimed as deductions. Good record-keeping and timely filing are essential if you intend claim any contributions on your tax return.
Stunkel Tax & Accounting can help you determine which of your donations may be claimed as a deduction on your tax return, so that you and your business can make the most of your charitable contributions. Please use our appointment planner to request a free one-half hour telephone consultation or to arrange a meeting, or give us a call: 412-371-8600.
Stunkel Tax & Accounting 