We donated electrical services to two non-profit organizations and we're an S Corp. How do we deduct the value of these services on 1120 S?
- posted
11 years ago
How do I deduct donated business services on my 1120S?
Loading thread data ...
- Vote on answer
- posted
11 years ago
Per Pub 526,
So, you need to break down your donation into labor vs. materials, only the latter is deductible.
When you have qualified S-corp charitable contributions, they are a pass-through item to the shareholders via Form 1120S Schedule K-1.
- Vote on answer
- posted
11 years ago
If OP is in business, the materials have probably already been deducted.
___ Stu
formatting link
- Vote on answer
- posted
11 years ago
Agreed. Expenses can only be a business deduction or a charitable pass-through, not both.