Where do I report business charitable donations? My business donated to charities from it's own account, this is not personal donations, where on turbo tax does this go?

[TraceyTS · Accepted solution]

You've indicated that you are using TurboTax Home and 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. You may want to clarify or consider the terms of your donation. 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 IRS link below for clarification on this rule. There are examples that may help you determine if you can deduct the payments or not: http://www.irs.gov/publications/p535/ch11.html.

[tomedwards4695]

Hello. I have a similar question. I can write off my donations to charity as a marketing expense. But in which category would I list this? I don't see any category for charitable contributions in the 'Business' section of Turbo Tax Home and Business

[mklebacher]

You would write it off under advertising

[Folsom1010]

This is not a charity it is an investment in a start up company

[WendyN2]

Corporations may not deduct more than 10 percent of their pretax income in a given year but, like individuals, may carry forward excess donations for 5 years. Some Corporate contributions, however, might also qualify as business expenses. If this is the case, many put it into advertising as this includes marketing.

[mahimahimom]

A number keeps popping up under DEDUCTIONS under PERSONAL under DONATIONS TO CHARITY 2020 

of roughly $10,000

I can not rid of this $10,000

Where does it come from.

I did not enter it.

And it is not a forward carry from 2019.

My number is to be $0.

As I entered 0 entries under DONATIONS TO CHARITY 2020.

Is it pulled in and re-categorized from elsewhere somehow?

(I have a Schedule C but for 2020 also:  $0 Donations)

[VolvoGirl]

Are you doing a 2020 return?  You have to be using the Desktop program for 2020.  Exactly where?  Is it on a Schedule A  line #?  You might be seeing the max deduction for State Taxes like withholding and property tax.  

There is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT". SALT is State And Local Tax. Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

[mahimahimom]

Thank you VolvoGirl.  

It appears to be a strange thing with the TurboTax program.

It's the 0.6 of AGI which was a negative number for TY 2020 for me.

According to the TurboTax rep it's the limit on it. deductions (limit for cash contributions)

which doesn't really exist with AGI negative.

Somehow, the number amount was housed there under Donations to Charity (in personal).

I printed the 1040 in PDF, and did a search for the inexplicable amount.

I do not see the amount anywhere on the actual return. 

It's likely all good.

But confusing.

Should be taken out.  At least not be visible in the TurboTax program.

Could be housed there, but should not show for user.