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  1. #1
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    best way to donate 50% of profits?

    I am considering next year having 50% of my profits go to help those in need. What is the best way to do this? I am sure it'll bring up an audit flag for the irs, but what is the best way to do this from a tax perspective? I am a sole proprietor.

  2. #2
    Avid Logophile silver trophy
    ParkinT's Avatar
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    If you are a sole proprietor and all your income is registered against your SSN, simply make a donation (at the end of the year) for whatever amount you wish.
    If you are incorporated (LLC, for example), I don't think it makes much difference. But the donation could be made in the corporation's name - which will add some "goodwill" for your brand.

    The people who do tax returns are VERY slow near the end of the year. I would approach one next year and ask them to hypothetically calculate your taxes. This would help you tune the amount you wish to give to charity that will best help your tax situation.

    *I speak only from personal experience. I am NOT a tax professional. {I just play one on TV. LOL}
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  3. #3
    Life is short. Be happy today! silver trophybronze trophy Sagewing's Avatar
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    What, exactly, is your concern? Charitable donations are (for the time being) and straight deduction and if you are filing sole proprietor you don't need to be concerned about how you are deducting - it just comes from your taxable income. There's no strategy to it.

    As for being audited, not taking deductions for fear of getting audited is silly. If you get audited you are 100% in the clear as long as you aren't cheating on your taxes.
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  4. #4
    SitePoint Member johnjackson's Avatar
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    We support charities differently, we offer our services at discount rates of 50%, via a website called <snip>, charities get the discount. We only support UK charities, so they need prove they are a charity by been registered on Charity Commission website. Keeps away the people who say, "me and my mate are a charity", well prove it!
    Last edited by TechnoBear; Sep 4, 2012 at 06:08. Reason: Self-promotional URL deleted.


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