HOW TO CHOOSE WORTHY CHARITABLE CAUSES IN 2022
Did you know that you can make charitable contributions as a business as well as donating as an individual? If not, you’ve been missing out on a great opportunity to get a tax deduction. Read more
Your Guide To Small Business Charitable Donations In 2021
If you own a small business, you know how important it is to support various charitable causes, both within your own community and throughout the world. But as you know, there are always changes related to your taxes and how your charitable donations may be done from one year to the next. As 2021 begins, it is important for you to be aware of several changes to charitable donations, some of which have been done so via the CARES Act passed by Congress in 2020. If you are a small business owner and make it a priority to provide charitable donations each year, here is what you need to know going forward in 2021.
Beware Of Charity Fraud
Before making your next donation to your favorite charity you might want to do some research. Do you really know to whom you’re donating? Do you know the charity’s stated mission? How much of your donation goes toward achieving the charity’s mission? How much of your donation goes toward “overhead” (officer compensation – other than toward the charity’s mission)?
Disaster & Casualty Losses
A disaster loss is a loss attributed to a casualty occurring in an area declared by the President of the United States to be a disaster area entitled to federal assistance. Thus, in order to qualify as a disaster loss, the loss must also qualify as a casualty. On the flip-side, however, a disaster loss is not a prerequisite to “casualty” status.
Is the Home Office Deduction for You?
For ages it has seemed that claiming the home office deduction on your tax return was a sure-fire invitation for an IRS audit. In fact, on many occasions, taxpayers had been advised to forego claiming this deduction even when they seemed to satisfy the IRS requirements to legitimately take the deduction. The IRS’s stance was based on the relative ease and susceptibility of abuse when it came to the home office deduction.
Charitable Contributions: Reporting To The IRS
The primary authoritative support concerning the valuation and reporting and recordkeeping of charitable donations is addressed in the Internal Revenue Service — Publications 526 and 561.
When Doing Something Nice Back Fires – Loans/Gifts
It’s not unusual for a family member to provide financial assistance to another family member by giving the recipient money to meet a need — i.e. to help purchase a home, pay for medical expenses, etc.
Writing Off Bad Loans You Made
So your friend was in a pinch and you thought they’d be good for it and they weren’t. It’s not all bad; you can lower your taxable income as a result.
Your Guide To Recordkeeping on Taxes & Charitable Donations
Make the most out giving to charity by benefiting from all the available tax breaks you’re entitled to.