topic change donations source in Deductions & credits

change donations source

Paolooch — Wed, 19 Feb 2020 21:45:07 GMT

We have dual incomes. My spouse is self-employed. Last year, we didn't get any tax benefit from making charitable contributions from our personal account. That would include church as well as charitable causes. Is there any reason we can't claim those deductions as business expenses if my spouse made them from the business account? Not doubt about it, this is an attempt and having the cake and eating it, too.

Thanks.

TH666

Re: change donations source

GiseleD — Wed, 19 Feb 2020 22:30:13 GMT

Only C corporations can make charitable contributions and not have them pass through to the returns of the individual members. If your wife's business is not a C corporation (filed on Form 1120), then it, as an entity, cannot make the charitable contribution. Individually, you can still itemize these charitable contributions on your federal Schedule A, but you won't receive a tax benefit if your itemized deductions are under your standard deduction for your filing status (which is $24,400) for most married taxpayers. You CANNOT deduct them on a Schedule C (Profit or Loss From Business) or a Form 1120s (S corporation return).

Re: change donations source

Paolooch — Thu, 20 Feb 2020 20:41:10 GMT

Thanks.

TH666