Farm Produce donations

[attse]

My farm donated produce throughout the summer to the local food bank. How do I account for this in TurboTax Business?

[ErnieS0]

It depends on what type of organization you are. You mentioned TurboTax Business, so I’m assuming you are not a sole proprietor. Self-employed individuals cannot deduct charitable contributions as a business expense. Instead they will enter them in Deductions & Credits are personal charitable donations.

Partnerships and S-Corporations will report on their donations on their income tax returns. The amounts will be passed on to the partners and shareholders. TurboTax has a entry for Charitable Contributions under Business Expenses.

[attse]

Ok. The farm is a multimember LLC. How do I determine the deduction amount? I made the donations to a Religious Food Bank so I assume I can deduct 50% of the market value of the produce that was donated. Is that correct?

[MaryM428]

You can deduct 25% of basis.  If there is no tax basis because all costs have been expensed, then you can deduct 50% of FMV.

For a multimember LLC, this needs to be reported on the partnership return.