There have been several calls for charitable contributions during the last year due to people struggling to stay afloat throughout the crazy year of 2020. Many people have been sharing what they have and thinking that it is all tax deductible at tax season. However, not all charitable contributions are tax deductible. Mark Dicus & Company is here to talk about some contributions and explain what makes the deductible and what makes the not deductible.
Can You Write Off a Donation to an Individual or Business?
There is no shortage of people or businesses that have lost jobs and suffered losses. It has been heartwarming to see how many people have given what they have to those that are in need throughout all of this. It is important to know that even when you make a charitable contribution to these persons or businesses using your business account, it doesn’t mean that you will be able to deduct it at tax time. In fact, it doesn’t really matter what the platform for the donation is, when you make a donation to an individual or a business, it is considered a gift and not a deductible expense. The recipient must be a qualified organization for it to be included in the tax deductible expenses.
What are Qualifying Charitable Donations?
With many causes out there to donate to, there is no shortage in where you can give money. Again, when using your business account to make donations to causes, you need to make sure they are qualifying. Whether you think they should be or not, does not mean that the IRS sees them as a qualifying organization. In fact, if the organization doesn’t send you a donor letter that specifically lays out all the details of your donation, and the IRS doesn’t recognize the organization as one that qualifies, you will be out of luck at tax time.
Are Political Donations Tax Deductible?
It’s no secret that this year has been incredibly politically charged. However, if you have donated to a political candidate, don’t count on it being deductible. That is money that you are freely giving to that candidate without getting anything in return; that is, unless you get a political win out of it.
Are Religious Tithes & Offerings Tax Deductible?
Most of the time, when you make a religious donation, you can count on that being tax deductible. Your church should give you a donation letter that clearly details all of your donations throughout the year so that the IRS can plainly see where the money has gone.
Tax Preparation, Filing, Resolution & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have made some donations and are unclear as to whether or not you can deduct them from your taxes, you can call on the professionals at Mark Dicus & Company to help you sort it all out. Our accountants can assist you in preparing your taxes and ensure you get all the deductions that are available to you. Call us today!