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New Member
posted Jun 6, 2019 12:10:34 PM

How do I write off a sponsorship to a business? Where on turbo tax do I enter this info?

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10 Replies
New Member
Jun 6, 2019 12:10:35 PM

Was this a donation?

New Member
Jun 6, 2019 12:10:36 PM

Are you Self-Employed or do you have a corporation, partnership?

New Member
Jun 6, 2019 12:10:38 PM

Yes, it was a donation

New Member
Jun 6, 2019 12:10:38 PM

Somewhat of a large donation to a new business.

New Member
Jun 6, 2019 12:10:39 PM

Are you Self-Employed?

New Member
Jun 6, 2019 12:10:41 PM

Retired.

New Member
Jun 6, 2019 12:10:43 PM

OK. Thanks. Let me know if you need anything else.

New Member
Jun 6, 2019 12:10:44 PM

What If there is a partnership involved?

New Member
Jun 6, 2019 12:10:46 PM

Partners can agree among themselves as to how income, losses, and gains will be divided among the partners. For instance, you can claim 100% of the losses and your partner can claim 100% of the income. Any agreement is possible. If there is no partnership agreement, then income, losses and gains are allocated proportionally based on the partnership interests of each partner. The partners then report the allocated amount on their individual income tax returns and pay taxes accordingly.  It's best to talk to an accountant or attorney to set something like this up. Hope this is helpful.

New Member
Jun 6, 2019 12:10:47 PM

If you are not in business yourself, donations need to be made to qualified charitable organizations. These are organizations that have been granted tax-exempt status by the IRS and are eligible to receive tax-deductible charitable contributions. Donations or gifts to an individual or any organization that is not tax-exempt are not deductible.

Examples of qualified charitable organizations:

  • Churches, mosques, synagogues, temples, and other religious organizations
  • Charities like Goodwill, United Way, Salvation Army, Red Cross, CARE, Boy/Girl Scouts, Boys/Girls Clubs of America
  • Nonprofit schools, hospitals and volunteer fire departments
  • Veterans' and certain cultural groups
  • Public parks and recreation facilities

If you're not sure of the organization's charitable status, contact them directly or use the IRS Exempt Organizations Lookup Tool.

Sometimes, however, businesses that have received some benefit for the donation (ad space or marketing, for example) may deduct the payment as a business expense on a business return.

If you've provided capital towards a new business entity, it would seem that you could/should have an equity stake in the business. Otherwise, it's just a non-deductible gift.

Please feel free to post any additional details or questions in the comment section.