☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 30, 2020 9:29:28 PM

Shipping Costs I Cover for a 501(c)(3). Where to deduct?

One of my customers is a 501(c)(3) animal rescue. They purchase, at regular price, stuffed animals I sew from my small business (I am self-employed).  I cover their shipping to help defray costs to the rescue. Can I write off the shipping charges ($250) as a charitable contribution? Or do I just deduct as a business expense on my Schedule C? Or?

Thank you.

0 1 485
1 Best answer
Expert Alumni
Jan 31, 2020 7:38:06 AM

Deduct the shipping cost as a business expense on your Schedule C.  The value of the shipping versus the total sales price of the merchandise is probably relatively small, so essentially what you did is negotiate a discounted price for a certain class of customers.

1 Replies
Expert Alumni
Jan 31, 2020 7:38:06 AM

Deduct the shipping cost as a business expense on your Schedule C.  The value of the shipping versus the total sales price of the merchandise is probably relatively small, so essentially what you did is negotiate a discounted price for a certain class of customers.