The following advice is from the Wells Fargo “Business Advisor”. Prospective donors to the CyberSpace Avalanche Center are advised to seek the advice of a competent tax professional before entering into any charitable planned gift. If we can help, please email us directly at email@example.com.
Make Charitable Contributions to tax-exempt organizations, says Kathy Womack of Arlington, Texas-based Income Tax Consultants. You can charge last-minute donations in the current year to a credit card and and take the deduction even if you pay the bill in the following year. If you make the donation by check and the charity doesn’t receive the money until after the start of the new year, you can still take the deduction for the current year if you mailed the check by Dec 31. For businesses, make sure you put all of this information in your minutes, too.
Womack notes that charity donations made by sole proprietors or S corporations don’t apply to the business – the deductions are passed through to individual owners and reported as an itemized deduction on the individuals return. “That’s one thing that [business owners] have a misunderstanding about.”