November 29, 2016
Today is Giving Tuesday! The third serving of the Black Friday and Cyber Monday Christmas season spending days, this one focuses on supporting those charitable causes that rely on donoations. Now that the door-busting sales and online deals have happened, it's a time to focus on giving. Santas with bells collect for the Salvation Army and food kitchens ask for your time in helping the needy. By giving, others receive. But by giving, can you also receive something yourself come tax time?
How can charitable contributions benefit your taxes? First, contributions to qualified §501(c)(3) organizations are itemizable on your 1040. Just be sure to get a receipt for your records. This doesn't have to be turned in, but you'll want should the IRS request substantiation.
Noncash receipts can require a bit more paperwork. Donating old clothing and various household items? Make an itemized list of what you're contributing, and get a receipt from the charity. Also, items must be of fair quality. You can't get a deduction for donating unusable, worn out junk.
If you volunteer your time, note that the hours are not deductible. But, if along with your service, you have miles relating to a charitable cause, those can be deducted at a rate of 14 cents/mile.
Even if you miss out on Giving Tuesday, you have 364 other days of the year with which to support the numerous charities that deserve your support. Just be sure to keep track of it properly for tax purposes!
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For many business owners, September tends to bring a bit of a slowdown. The chaos of getting kids prepared for going back to school has passed, and a focus on saving money tends to kick in as people prepare for the coming holiday spend. Combined, this can often translate into a lull for business owners.
This is a friendly reminder that the Q3 tax estimate payment deadline is coming up fast. Be sure to make your payment by September 15, 2018 to avoid penalties. Currently, penalties for late or no payment average about 4 percent. And wouldn’t you rather keep that money in your pocket?
According to new rules from the Tax Cuts & Jobs Act, meals and entertainment tax-deductible expenses for businesses have undergone considerable reform. Because the explanations of new deduction guidelines can be confusing, we’ve created this brief outline for you. A visit with your accounting professional to ensure your Chart of Accounts is correct may also be beneficial.