Donation as a tax write off?

**journeyoftheanimala** · 08-22-2007 03:08 PM

OK if I advertised on my site that I would donate 10% of all sales to the national humane society could I write off those donations on taxes? There is so much I have to learn. Thank you in advance for the information.

OH and I was thinking of doing this donation thing all year long.

**radreality** · 08-22-2007 03:48 PM

Originally Posted by journeyoftheanimala

OK if I advertised on my site that I would donate 10% of all sales to the national humane society could I write off those donations on taxes? There is so much I have to learn. Thank you in advance for the information.

OH and I was thinking of doing this donation thing all year long.

Typically only costs associated with doing business can be written off on the business financials. This question is better suited for your cpa, since this involves both the federal laws and your specific states laws.

A better way to do it would be to state that you donate a percentage of the profits. The profits are what is paid out to you. Then you can usually claim it on your personal financials. Not all donations to organizations are tax deductable though. So if you are only doing it for the tax write off, then find out from the organization if its deductable or not.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**journeyoftheanimala** · 08-22-2007 04:03 PM

OK first off what is a CPA? I do not have the money I need right now to open the business. I Really wish I did, but I guess all in good time (really hope to have the money together by 01/01/08 at the latest). I like what you said about 10% of profits. I am doing this for a few reasons. My site is going to be selling pet related products and supplies. I know quite a few people that are ready to start buying from me once the place is open. I wish to do the donation thing for multiple reasons.

Nice thing to do.
Tax write off.
Believe it will bring in some extra traffic. (As a pet owner I know that a site donating like this would catch my attention .

**radreality** · 08-22-2007 04:15 PM

a cpa is a certified public accountant. There's a difference between a cpa and a regular account. CPA's are the ones that generally do your taxes. Regular accountants are the ones that generally do bookkeeping type tasks. Some CPA's do both depending on the size of their accounting firm.

Making donations off of the profit is a much better way to go. Thats what my company does.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**journeyoftheanimala** · 08-22-2007 05:39 PM

Hmmmm, had not thought of a CPA. What kind of money would that run and any tips on finding a good one? I was thinking of H&R block to do my yearly taxes.

**radreality** · 08-22-2007 07:31 PM

Well, the cost really varies. Sometimes you can find a cpa that will do an initial meeting with you for free just to help answer any questions you have to help get your business off the ground, thinking that you will come back and do business with them when you need them.

I think my cpa charges about $125/hour and my accountant charges $75/hour. Some charge less, some charge more.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**journeyoftheanimala** · 08-22-2007 11:20 PM

$125 an hour? wow. Surely will not begin with that. LOL will be happy to begin with if I make 125 in a month. Thank you for the information.

**radreality** · 08-22-2007 11:35 PM

Originally Posted by journeyoftheanimala

$125 an hour? wow. Surely will not begin with that. LOL will be happy to begin with if I make 125 in a month. Thank you for the information.

Don't ignore the first part of what I said though. There's no harm in calling up cpa's and asking them what they charge and seeing if they charge for the first meeting. When starting a small business, you can usually get most of your answers and most of the info you need in just one meeting.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**David Rocci** · 08-23-2007 09:25 AM

You could pick up the phone and call any CPA in the yellowpages and ask them your 5-minute question and I'm sure they would happily tell you the facts you need without a charge.

And don't go to HR Block, go to Liberty Tax Service

-dr

**journeyoftheanimala** · 08-24-2007 04:23 PM

Why do you suggest Liberty Tax? Just wondering.

**David Rocci** · 08-24-2007 05:26 PM

Check out my profile - I own a Liberty Tax Service franchise in Shorewood, IL (suburbs of Chicago). So, my opinion on using Liberty is a little biased, but hey, it's a great place to have fun and get your taxes done!

-dr