Do you have a favorite charity that you find yourself continually contributing too? Turn that schedule A deduction into a business deduction. Sponsor a fund raising event!
The event could be a golf outing, a silent auction, or just about any activity. The charity will usually have different levels of “sponsorship” and will include your logo and/or business information in event marketing, advertising and promotion before, during, and after the event. Now you have a direct deduction against your gross business income rather than a schedule A deduction, if you itemize, and even then could be subject to limitation. Depending on your entity structure you may also receive a self employment tax benefit.
Great business exposure while supporting your favorite local charity. And you’ll be pleasantly suprized when you realize how many people will support a business who believes in supporting the same charities they do!
At the very least, you’ve had a fun day or evening, made a few new friends or contacts, and received a better income tax deduction and possibly a self employment tax benefit too.
If you have any questions, please contact us.
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