ReginaM
Expert Alumni

Deductions & credits

You've indicated that this vehicle was used for business. If this is the case, your business is either a sole-proprietor, partnership, or single-member LLC. As such, the information I've provided pertains to that business structure.

 

In general, charitable contributions are not allowed as a business expense on the Schedule C. However, if you made a payment to a charitable organization that was not for charity nor a gift, you may deduct the payment as an expense to the business.

 

If your business received any benefit for the donation (ad space or marketing, for example) you may deduct the payment as an expense. Otherwise, your charitable gift/donation is not deductible under your business, but may be deducted on the Schedule A if you itemize your deductions for your personal tax return.

 

You may want to review the Publication 535 for clarification on this rule. There are examples that may help you determine if you can deduct the payments or not.

 

Should you have any further questions in regards to your concern, please respond to this thread.

 

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