Monday, November 30, 2009

Sole proprietorships may not deduct a charitable donation as a business expense.

June --

Massage therapist , 1 year.

If I raise money doing massage and then write a check to a non-profit for the amount of the proceeds, is this considered a charitable gift and tax deductible if I am a sole proprietor (a personal deduction instead of a business deduction)?

Linda
Newton, MA


Dear Linda,

The money you receive for doing massage is self-employed income.

The money you give to a charity is a personal charitable deduction not a business expense.

There's a lot more info here expenses -- donated services or products .

-- June

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4 comments:

  1. AnonymousDecember 1, 2009 at 1:10 PM

    I think what this means is that the income gets taxed (self employment tax
    etc.) and then anything I donate to the charity is considered a personal
    deduction. Correct? Sorry to be so dense. Thank you for responding!
    Linda

    ReplyDelete
  2. June WalkerDecember 5, 2009 at 10:25 AM

    June Walker said...
    Dear Linda,

    You are correct.

    To you and all indies: Never feel "dense" about asking and re-asking a tax question. Always clarify to make sure you and your tax pro have the same understanding.

    Best,
    June

    ReplyDelete
  3. Income Tax Preparation OnlineDecember 13, 2009 at 9:59 AM

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    ReplyDelete
  4. June WalkerDecember 21, 2009 at 2:06 PM

    Thank you all for your generous comments. So glad to be of help.

    And, no, I am not a professional journalist. However, some of my best friends are. And, also, many of my clients are journalists.

    -- June

    ReplyDelete