Deduction of Business Donation

Forum|Forum|7 years ago
June 5, 2019
3 replies
15 views

I run a business as a DBA. I have several donations of services and intangible items that are donated to non-profits. Where do I list those donations? Business expense or personal deduction? For example, I design, host, and maintain several websites for non-profits. Where do I deduct the hosting expense that I'm giving those non-profits as a donation via the DBA?

TurboTax Self Employed Online

NewGuy

Level 6

are you talking actual expenses you incur or the value of the product you are providing?

antunheimAuthor

Level 2

Both. The expense of the hosting and also the professional services.

NewGuy

Level 6

You cannot deduct the professional services, your labor is never deductible as a charitable contribution.
https://www.irs.gov/publications/p526/ar02.html#en_US_2016_publink1000229698

Value of Time or Services
You can't deduct the value of your time or services, including:
    Blood donations to the American Red Cross or to blood banks, and
   The value of income lost while you work as an unpaid volunteer for a qualified organization.

You can deduct the costs you incur while performing these services such as the hosting service, if it is a cost you incurred only because you were contributing your services to the qualified charity.
https://www.irs.gov/publications/p526/ar02.html#en_US_2016_publink1000229674
Although you can't deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:
    Unreimbursed,
    Directly connected with the services,
    Expenses you had only because of the services you gave, and
    Not personal, living, or family expenses.