A good deed is not a tax deduction.

Hi June,
I really enjoy your newsletters -- Ways Through the Maze . I've been doing my own taxes for close to 20 years using Turbotax and it's predecessor, MacinTax. For many of those years, I was an employee with a part-time business. I'm now in business for myself publishing a local home improvement magazine.

The business is now 2 years old and struggling but surviving. My dilemma is this: I sold an ad last year to Habitat for Humanity at a highly discounted rate and they've given me a receipt for a donation for the balance of the amount. However, I can't figure out where on my Schedule C to place this donation. Turbotax doesn't seem to allow for a business to make a donation but I know that this is not that uncommon.

Can you tell me how I should account for this on my tax forms. I'm structured as an LLC.

Thanks,
Alan


Dear Alan,

Glad you like my eLetters. Please tell your indie colleagues.

You can't find it on TurboTax because there in no accounting for donated time other than the feeling in your heart that you get for doing a good deed.

Read this post about Donating Time: 10 Cents A Minute .

Best,
June