allowable llc deductions-charitable donations
Hi...I am wanting to set up an LLC in wyoming that will be involved in commerce(selling products to raise money for charity)...if the people that will be involved to help sell the products are willing to donate their time and not be paid can all/100% of the profits that come into LLC pass through or be paid to an organization that has a tax exempt status ein issued from the IRS(a 501C3 I THINK)--with all of the money being donated to the charity========>>>>>>>>>>>>>>>> The irs does not allow taxpayers to deduct the fair market value of their volunteer time or services on their tax returns as a charitable contribution.
....I am assuming the LLC will probably be flagged for audit but we don"t care as long as what we are doing is allowable & in compliance w the IRS code??========>>>>>>no I do not think so either.
Thank you for your helP. This is in NC(LLC set up in WY and products sold mainly on Internet in all states). Also what would be the maximum that could be donated to the charity by an individual and be tax deductible on their tax return??======>>>>>>>>>to deduct your charitable contributions to charitable organizations, you must itemize deductions on Sch A of 1040, it not, you can not deduct any cent you contribute to charitable organizations. Accordingly, you should only claim your charitable donations as a tax deduction when your deductible charitable donations plus your other itemized deductions is greater than your standard deduction. If you've made a significant donation of your own, you need to know the limits on how much you can deduct from your taxes each year; If you donate cash or cash equivalents such as checks or a donation made by credit card , the IRS limits the amount of your deduction based on your agi. Charities such as religious organizations, schools, hospitals and governments are often subject to a 50 percent limit, meaning you can't deduct contributions made in excess of 50 percent of your adjusted gross income. For example, if your agi equals $30k you can't deduct more than $15k in church contributions. Other charitable groups, such as cemeteries and veterans' associations, are subject to a 30 percent limit.