What to do if f I have an online business and would donate 20% of the retail price on each order to charity?
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What to do if f I have an online business and would donate 20% of the retail price on each order to charity?
Do I take that donation before tax or after tax and is that 20% donation considered taxable income for me? Do I include the 20% donation as my gross income?
Asked on July 2, 2014 under Business Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
It's part of the business's gross income, and then will reduce that income to a lower net for taxable purposes, similar to charitable giving by an individual. Since the exact impact on you and your business will depend on a number of factors, including the business structure (e.g. a sole proprietorship? an LLC? a corporation--and if a corporation, a sub-C or sub-S?) and number of owners, you should consult with an accountant about the exact impact and how maximize the gain to you while help charities.
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