Comments on: Ask the taxgirl: Charitable Deductions for LLCs http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/ Paying taxes is painful... but reading about them shouldn't be. Sun, 12 Feb 2012 17:55:29 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Paul http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/comment-page-1/#comment-10774 Paul Wed, 24 Jun 2009 20:52:53 +0000 http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/#comment-10774 Quick Question: How would donating something like downloaded software come into play? It is not distributed on disk, not delivered in a box, nor any other physical media. (...not in a box, not with a fox, not in a house, not with a mouse...I do not like them Sam I Am...."couldn't resist") Thanks in advance! Quick Question: How would donating something like downloaded software come into play? It is not distributed on disk, not delivered in a box, nor any other physical media. (…not in a box, not with a fox, not in a house, not with a mouse…I do not like them Sam I Am….”couldn’t resist”)

Thanks in advance!

]]> By: Jack.Lix http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/comment-page-1/#comment-10088 Jack.Lix Sat, 11 Apr 2009 18:08:43 +0000 http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/#comment-10088 Well, its that time again... Regarding the deduction of contributed food... Since my basis is about 32% of the donated food, if I donated (FMV) $100 of food, then my basis would be $32 and the deduction is the lower of ($32+$16=$48) or (2*$32=$64). So the deduction is $48. All that to ask my question!! My basis has already been deducted. I deducted all the food I purchased as COGS and the labor used to make the contributed food under salaries and wages. So, now is the deduction still the $48 as "non-cash contributions" or should it only be $16 (because the $32 basis has already been deducted as COGS and salaries)? Thanks so much!! Jack Well, its that time again…

Regarding the deduction of contributed food… Since my basis is about 32% of the donated food, if I donated (FMV) $100 of food, then my basis would be $32 and the deduction is the lower of ($32+$16=$48) or (2*$32=$64). So the deduction is $48.

All that to ask my question!! My basis has already been deducted. I deducted all the food I purchased as COGS and the labor used to make the contributed food under salaries and wages.

So, now is the deduction still the $48 as “non-cash contributions” or should it only be $16 (because the $32 basis has already been deducted as COGS and salaries)?

Thanks so much!!

Jack

]]> By: Dean http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/comment-page-1/#comment-8271 Dean Tue, 13 Jan 2009 18:02:40 +0000 http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/#comment-8271 Thank you for the article. You state: "Your donation deduction will be limited by AGI (adjusted gross income) limitations - noncash contributions like ice cream will likely be subject to the 50% AGI limitations." Whose AGI establishes the limitation? Is it the LLC's AGI or is it each individual partner's AGI that is relevant for the limitation? Thank you for the article.

You state: “Your donation deduction will be limited by AGI (adjusted gross income) limitations – noncash contributions like ice cream will likely be subject to the 50% AGI limitations.”

Whose AGI establishes the limitation? Is it the LLC’s AGI or is it each individual partner’s AGI that is relevant for the limitation?

]]> By: bill http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/comment-page-1/#comment-4464 bill Thu, 11 Sep 2008 02:54:12 +0000 http://www.taxgirl.com/ask-the-taxgirl-charitable-deductions-for-llcs/#comment-4464 Maybe this will stir up some good discussion: I have often wondered whether the contributions reflected on the books of most businesses are really contributions. It seems that promotion and recognition of the company name is usually the real reason for the gesture. Therefore, would they better qualify as advertising and promotion under Sec. 162 and 212 rather than simply as "gifts" under 170(c)? What do you think? Maybe this will stir up some good discussion:
I have often wondered whether the contributions reflected on the books of most businesses are really contributions. It seems that promotion and recognition of the company name is usually the real reason for the gesture. Therefore, would they better qualify as advertising and promotion under Sec. 162 and 212 rather than simply as “gifts” under 170(c)? What do you think?

]]>