|
#6
11-23-2004, 04:37 PM
| |||
| |||
 Re: Charitable donation of business product - quote - > > My wife has a sole proprietor business where she takes raw
But only if she also reduces the COGS by the same amount via> > goods, adds her labor, and sells the finished good for a > > profit. > > About a week ago she donated a finished good to a charity. > > The charity will be auctioning off the finished good. > > What can she deduct? > Actual cost, on Schedule A. line 36 on Schedule C. Otherwise the cost of the material will be deducted twice - once in determining profit on Schedule C and once on Schedule A. -- Don EA in Upstate NY << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#5
11-22-2004, 01:58 AM
| |||
| |||
| Re: Charitable donation of business product - quote - > My wife has a sole proprietor business where she takes raw
Only the cost of materials & supply (removed from the> goods, adds her labor, and sells the finished good for a > profit. > About a week ago she donated a finished good to a charity. > The charity will be auctioning off the finished good. > What can she deduct? > A. COGS? > B. What she would have sold it for? > C. What it sells for at auction? > D. Other? > And where does she deduct it? > A. Schedule C with all her other business expenses? > B. Schedule A under charitable contributions along with > our other charitable contributions? > C. Other? inventory and/or other cost of goods sold for personal use) would be deductible on Schedule A as a charitable deduction. Costs of her labor/time is not deductible. "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!=  << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#4
11-22-2004, 01:39 AM
| |||
| |||
| Re: Charitable donation of business product - quote - > My wife has a sole proprietor business where she takes raw
Cost of materials. This is usually the same as COGS in a> goods, adds her labor, and sells the finished good for a > profit. > About a week ago she donated a finished good to a charity. > The charity will be auctioning off the finished good. > What can she deduct? sole proprietorship with no employees, because the sole prop's labor counts as zero. If she keeps inventory, she treats the materials as withdrawn for personal use, so she doesn't double-count the cost in COGS. - quote - > And where does she deduct it?
Schedule A: charitable contributions other than by cash orcheck. -- Chris Green << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#3
11-22-2004, 01:20 AM
| |||
| |||
| Re: Charitable donation of business product Robert wrote: - quote - > My wife has a sole proprietor business where she takes raw
Bingo! But, if considered donated from inventory, it> goods, adds her labor, and sells the finished good for a > profit. > About a week ago she donated a finished good to a charity. > The charity will be auctioning off the finished good. > What can she deduct? > A. COGS? may be more complicated. - quote - > And where does she deduct it?
B, unless it is considered, and CAN be rationally> A. Schedule C with all her other business expenses? > B. Schedule A under charitable contributions along with > our other charitable contributions? > C. Other? considered, advertising, it which case it's A. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#2
11-22-2004, 01:01 AM
| |||
| |||
| Re: Charitable donation of business product "Robert" <malakitoatwork[at]hotmail.com> wrote - quote - > My wife has a sole proprietor business where she takes raw
Her actual cost to make the item. Personally, I'd leave the> goods, adds her labor, and sells the finished good for a > profit. > About a week ago she donated a finished good to a charity. > The charity will be auctioning off the finished good. > What can she deduct? > A. COGS? > B. What she would have sold it for? > C. What it sells for at auction? > D. Other? costs burried in COGS. -- Paul A. Thomas, CPA Athens, Georgia taxman at negia.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#1
11-22-2004, 01:01 AM
| |||
| |||
| Re: Charitable donation of business product Robert wrote: - quote - > My wife has a sole proprietor business where she takes raw
Subtract the pure cost of the item (naturally not including> goods, adds her labor, and sells the finished good for a > profit. > About a week ago she donated a finished good to a charity. > The charity will be auctioning off the finished good. > What can she deduct? > A. COGS? > B. What she would have sold it for? > C. What it sells for at auction? > D. Other? > And where does she deduct it? > A. Schedule C with all her other business expenses? > B. Schedule A under charitable contributions along with > our other charitable contributions? > C. Other? her labor) from inventory, so that it not appear on COGS end of year. this is the value that goes to schedule a. Some will say just ignore it, and let it be reflected in COGS, but to do so has potential for lessening her profit on which SE tax is calculated. ChEAr$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
11-22-2004, 12:41 AM
| |||
| |||
| Re: Charitable donation of business product "Robert" <malakitoatwork[at]hotmail.com> wrote: - quote - > My wife has a sole proprietor business where she takes raw
Actual cost, on Schedule A.> goods, adds her labor, and sells the finished good for a > profit. > About a week ago she donated a finished good to a charity. > The charity will be auctioning off the finished good. > What can she deduct? > A. COGS? > B. What she would have sold it for? > C. What it sells for at auction? > D. Other? > And where does she deduct it? > A. Schedule C with all her other business expenses? > B. Schedule A under charitable contributions along with > our other charitable contributions? > C. Other? > Thanks, -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#-1
11-18-2004, 01:35 AM
| |||
| |||
| Charitable donation of business product My wife has a sole proprietor business where she takes raw goods, adds her labor, and sells the finished good for a profit. About a week ago she donated a finished good to a charity. The charity will be auctioning off the finished good. What can she deduct? A. COGS? B. What she would have sold it for? C. What it sells for at auction? D. Other? And where does she deduct it? A. Schedule C with all her other business expenses? B. Schedule A under charitable contributions along with our other charitable contributions? C. Other? Thanks, malakito. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| business, charitable, donation, product |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Charitable donation from an S-Corp John Wilson: I have an S-corp and would like to make a charitable donation from this S-corp. Are charitable donations from an S-corp a legitimate deduction? ... | Taxes | 3 | 03-03-2004 12:53 AM | |
| Charitable donation - when is it really deductible? Cher: Sorry if I sound like an idiot, but am I missing something here? I donated $260 to United Way this past year (2003). Co-workers tell me I can... | Taxes | 9 | 01-27-2004 09:18 AM | |
| charitable donation question Scott: Can't seem to find an answer to this one, so I'm hoping someone here can help. I am in the Central Time Zone. On 12/31 at 11:30pm Central time,... | Taxes | 3 | 01-20-2004 07:28 AM | |
| Deductible Charitable Donation ??? Ron Rosenfeld: We have been giving money to an unrelated individual (who does not live with us) in order to help this person with an educational program. Would... | Taxes | 30 | 12-29-2003 08:46 PM | |
| S Corp Charitable Donation of Inventory MichelleinAtlanta: I have several restaurant clients who donate food to charity events. They receive a letter from the charity thanking them and quantifying the... | Taxes | 8 | 09-30-2003 06:34 AM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
