Marc S. Pelletier, P.C., CPA's

 

666 Main Street, PO Box 326, Southington, CT 06489

 

Phone: 860-620-5500

December 2022

December 2022 Client Profile

charity, donation and volunteering concept - happy smiling male volunteer with clipboard and woman taking box of food at distribution or refugee assistance center

Vince owns a construction company, and during the holidays, he lets employees volunteer at their favorite charity and pays them for their time. Can he deduct these employee payments from his business tax return?


Although Vince is serving his community by encouraging his staff to contribute their time or skills to charity, the payment he makes to his employees doesn’t qualify as a charitable deduction. Instead, he should pay his employees if they volunteer during regular working hours, which would be recorded as payroll expenses.


However, if he incurs direct, non-payroll expenses on behalf of his employees’ volunteer efforts, he generally can deduct those as a charitable contribution. For example, if he supplies building materials for his employees to serve with Habitat for Humanity building homes, the construction materials he provides will be tax deductible. He needs to keep receipts for all donated materials and may need a written acknowledgment for amounts over $250.


Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.