Charitable contributions & the LLC

Discussion in 'Business Operations' started by DFW Area Landscaper, Aug 31, 2005.

  1. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Messages: 2,116

    I have my business set up as an LLC but it is taxed as a corporation with the IRS.

    If I write a check from my business account to the Red Cross, even if my business shows a loss after depreciation, will the donation be deductible?

    Is the entire donation deductible or only part of it?

    Anyone know?

    DFW Area Landscaper
  2. wbw

    wbw LawnSite Fanatic
    Messages: 6,079

    But I believe it will be a moot point if your depreciation already creates a loss situation. So NO TAX ADVANTAGE. Go ahead and send the check. They need the help and you will feel good about it. Maybe you will feel even better knowing you did it just because it was the right thing to do and not because it was a tax advantage. Feeling good is priceless.

    Watching this total devastation on the news really makes me feel for these people who have lost everything. Not just luxuries but everything. I have always dreamed of retiring on the coast, not so sure anymore.
  3. qps

    qps LawnSite Bronze Member
    from Indy
    Messages: 1,484

    I was thinking that you couldn't take depreciation to the point of a busniess loss??? also if you pay business property taxes claiming a bunch of equipment will hurt on your returns.

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