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Donation Write Offs

Posted: Thu Jul 02, 2020 9:35 pm
by azianbob
If someone has a business through a sole proprietorship, when they file taxes, if they donated clothes or other items to Goodwill and receive a write off amount, can they include that into their return?

I have no deductions so always take the standard deduction, but most business owners would file taxes with itemized deductions for their business expenses correct?

Re: Donation Write Offs

Posted: Thu Jul 02, 2020 9:39 pm
by dukeblue219
Your valid business deductions are on Schedule C, where you compute your net income. Whether you itemize your personal deductions is separate, and that's where the charitable deductions, mortgage, etc would show up.

Not a tax lawyer. But, I do have sole proprietor income.

Re: Donation Write Offs

Posted: Thu Jul 02, 2020 9:46 pm
by Flora
Deleted

Re: Donation Write Offs

Posted: Thu Jul 02, 2020 10:39 pm
by tj
azianbob wrote: Thu Jul 02, 2020 9:35 pm If someone has a business through a sole proprietorship, when they file taxes, if they donated clothes or other items to Goodwill and receive a write off amount, can they include that into their return?

I have no deductions so always take the standard deduction, but most business owners would file taxes with itemized deductions for their business expenses correct?
is it ordinary or necessary for your business?

Donating clothes doesn't sound like ith, but some type of marketing or advertising contribution to a non-profit would be valid, I would think.

Re: Donation Write Offs

Posted: Sat Jul 04, 2020 2:35 pm
by azianbob
I didn't mean as part of the business, but my understanding is they would just make one tax return, and file busiess stuff under a schedule C then they could add in the donation stuff in their regular portion of the 1040. Doesn't their business income and expense just merge with personal stuff in that case?

Re: Donation Write Offs

Posted: Sat Jul 04, 2020 2:45 pm
by sport
azianbob wrote: Sat Jul 04, 2020 2:35 pm I didn't mean as part of the business, but my understanding is they would just make one tax return, and file busiess stuff under a schedule C then they could add in the donation stuff in their regular portion of the 1040. Doesn't their business income and expense just merge with personal stuff in that case?
No. Business expenses are included on Schedule C where they reduce the business profit. Personal expenses are listed on Schedule A, but you would not do that unless they exceed your standard deduction.