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jdejardin1
New Member

Business expense vs charitable donation

I purchased an office item for my wife's non-profit place of business. I do not expect to be reimbursed. Should I claim purchase as a business expense for her, or as a charitable donation? What benefits me more, if at all?

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JohnH2
New Member

Business expense vs charitable donation

Your spouse’s “job-related” business expenses are subject to the 2% Adjusted Gross Income deduction limitation.  A contribution to a recognized non-profit charity, however, is not limited this way.  If we assume that your cost and the fair value of the donation are equal, and if we assume you did not make charitable contributions approaching 20% of your Adjusted Gross Income, you would receive a deduction for the fair value of the property donated.  However, with TurboTax you can try it both ways and use the best answer.

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JohnH2
New Member

Business expense vs charitable donation

Your spouse’s “job-related” business expenses are subject to the 2% Adjusted Gross Income deduction limitation.  A contribution to a recognized non-profit charity, however, is not limited this way.  If we assume that your cost and the fair value of the donation are equal, and if we assume you did not make charitable contributions approaching 20% of your Adjusted Gross Income, you would receive a deduction for the fair value of the property donated.  However, with TurboTax you can try it both ways and use the best answer.

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