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COLONEL WAFFLEJAW is a basstard!
Lv 4
COLONEL WAFFLEJAW is a basstard! asked in Business & FinanceTaxesUnited States · 1 decade ago

Paying taxes on a donation made by your company?

Hey guys!

Im making a product for donation to a non-profit organization.

My small business is very new and this is my first.

My question is since Im covering the expense (cost) Do I only report the sales tax and excise tax (sport fishing) for the amount I invested?

Since theres no income/profit...Do i still have to pay federal taxes on it too? income/self employee/SS,etc?

Hope that make sense...Im still at that stage of learning all this stuff.

Thanks!

Update:

Thanks guys,If I do the charitable donation claim,Is it taxed exempt?

I have to report sales tax/excise tax quarterly,so Im trying to figure out if I report the taxes for merchandise donated or is it tax exempt?

Thanks again,this stuff can be a little confusing in the beggining

2 Answers

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  • St N
    Lv 7
    1 decade ago
    Favorite Answer

    The cost of materials and labour to create the product is the amount that you are donating to the non-profit organization. They give you a receipt for this amount and you claim it as a business expense or charitable donation when you file. I doubt you can claim it under both categories. If it is part of your regular product, then use the charitable donation claim.

  • tro
    Lv 7
    1 decade ago

    the cost of the product you produced and donated to a non profit is the amount you charge as either a donation or a promotional expense

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