Sole proprietors generally take a personal deduction for charitable donations made by their business, not a business deduction.
Sole proprietors generally take a personal deduction for charitable donations made by their business. In the United States, a sole proprietorship is not considered a separate legal entity from the individual owner. Therefore, the business income and expenses are reported on the owner's personal tax return using Schedule C (Form 1040).
When a sole proprietor makes a charitable donation, it is treated as a personal expense rather than a business expense. The donation would be reported on the owner's personal tax return as an itemized deduction on Schedule A (Form 1040), subject to certain limitations and requirements set by the Internal Revenue Service (IRS).
However, please note that tax laws and regulations can change over time, so it's always advisable to consult with a qualified tax professional like Peter Witts CPA PC, or refer to the most up-to-date IRS guidelines for specific and accurate information regarding your situation.
I’m Kristin, the PWCPA PC Customer Success Specialist. For more information about this topic, or any other, you can always reach me through our customer ticketing system.
