Welcome Guest. Register Now!  


Non-Profit Organisation Non Profit Organisation


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-20-2014, 06:31 AM
Junior Member
 
Join Date: Dec 2014
Posts: 1
Tax break from for profit company to non profit rescue group

Help please. My brother is president of a for profit company and is looking to donate toward the dog rescue nonprofit group I started this past May. What is the best way for both companies to benefit in this situation. Should they make a monetary contribution and if so what are the maximums allowed. Or would it benefit him if they purchase items for donation such as dog food and kennels instead? We have not filed for our 501c3 status as we are still figuring out all the details of our group at this point and hope to in the future but don't know if that would make a difference or not.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-21-2014, 12:15 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by Elliemaekarnes View Post
Help please. My brother is president of a for profit company and is looking to donate toward the dog rescue nonprofit group I started this past May. What is the best way for both companies to benefit in this situation. Should they make a monetary contribution and if so what are the maximums allowed. Or would it benefit him if they purchase items for donation such as dog food and kennels instead? We have not filed for our 501c3 status as we are still figuring out all the details of our group at this point and hope to in the future but don't know if that would make a difference or not.
BASICALLY, it depends on your specific situation. How it is reported depends on the
type of entity. Charitable contributions made by a business are not usually deducted in the same way you would deduct a charitable contribution on your 1040. Rather, these contributions USUALLY pass through to the sole proprietor, partnership or shareholders of a corporation. If your business is a corporation, it is reported on your
corporate tax return form 1120, line 19, and is limited to 10% of
adjusted taxable income
making donations to a charitable organization on behalf of your corporation is both goodwill and good for your income return. aslongas you are an owner/sh of an S corp, the charitable contributions you make in the name of your company can be claimed on your 1040. C corp owners claim charitable deductions on the corp's tax return 1120. To claim charity-related tax deductions, the donations must meet specific irs rules. Regardless of whether your corp uses the cash / accrual method of accounting, you can claim tax deductions for only charitable donations that you make by the end of the tax year you're claiming the deduction for physical items to a charity, you can claim the fmv for that donation only. When you donate cash, you can claim the actual cash amount of the donation.but remember, you can deduct up to 50 percent of your charitable donation in most cases. If you donate to certain veterans organizations, private foundations or cemetery or fraternal organizations, you are allowed to deduct only up to 30 %. So you need to consult with a licensed tax adviser to determine the full tax deduction you can take for your corp's specific charitable contributions AND MORE ACCURATE INFO IN DETAIL.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Not-For-Profit Rental? pfdoher Rental Real-Estate 2 05-23-2013 12:52 AM
Rental not for profit? sjnbrody Income 1 03-02-2011 10:35 PM
Non Profit or For Profit Tax Return? CondoHOA Non-Profit Organisation 0 11-22-2009 05:43 PM
Filing a Non-Profit or a For-Profit Federal Tax Return CondoHOA Filing Requirements 0 11-19-2009 01:54 PM
If I buy a house, sell it shortly afterwards, for a profit, and reinvest the profit.. hollowman512 Capital Gains 0 04-18-2009 03:49 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.