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Level 1
posted Mar 1, 2021 6:22:57 PM

Farm Produce donations

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

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3 Replies
Expert Alumni
Mar 1, 2021 7:55:08 PM

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.

Level 1
Mar 1, 2021 8:45:57 PM

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?

Level 10
Mar 6, 2021 4:12:06 PM

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.