Donating money to avoid business taxes, it's pretty easy to do.

TommyCarey Level X³

2

May 10, 2017, 2:30 am

12

Donating money to avoid business taxes, it's pretty easy to do.

Whenever it comes to be tax season do you ever think of how much you have to pay? Well if you donate money to local businesses or communities you can usually get a tax write off and avoid paying taxes if your donation is large enough to cover it. You can donate wherever you'd like, just be sure to get a receipt of your donation that ties in your business and then you, or your accountant, can submit it to the government when your taxes need to be submitted.


How can I find businesses to donate to?
I've actually been asked this question a lot and it's actually pretty simple to do, just call around and ask small businesses with a cause and you're done. Normally we like to donate to local businesses to improve our own town and increase the value of everything around us, but you don't have to do that if you don't want to. You can donate to a place you regularly visit like a museum or a place that helps others like a childrens hospital. By donating to companies like these you will get receipts that you can enter in as write offs when doing your taxes.

You can save all of your receipts from your business purchases and submit them come tax season. Just be sure that you have a good reason to be purchasing using your business funds because if it's not for your business you won't be able to claim it. A good example of this is if you go to a store and buy a dress or a suit, you won't be able to write these off because they are personal purchases. You can somehow twist it and say that you needed them for a business meeting and depending on how awesome your accountant is, you can sometimes claim this even though it was a personal purchase lol.


Which business should I donate to?
Well that's entirely up to you because it's your money and you choose to do with it as you wish. You will likely want to donate to something in your area so that you can see your donations in action. My company has donated to zoos, museums and childrens hospitals like St. Judes just because we can see what is happening with our money or we are helping others live.

I personally like donating to St. Judes Childrens Hospital because they use the donations to help children. They do not charge the families when it comes to billing and that's something I think is missed in the world today. People never really go out of the way to help each other and St. Judes Childrens Hospital helps everyone they can and doesn't charge them.


How much should I donate?
Well that depends on how much you make each year. Let's say you're making $100,000 profit per year, then you'll want to be donating $15,000 to $20,000 depending on your other writer offs you've obtained during the year. I like to stay in the 15% to 20% range because I usually have a lot of write offs to add in at tax season.

Now I'm not accountant so you'll want to contact a CPA or someone who is an accountant in order to get a better idea of what you should be donating. But in my experience if you're donating 15% to 20% per 100k profits then you'll usually avoid paying taxes.


When should I donate?
That is entirely up to you, but I wouldn't do it right before tax season. Wait about 2 months before tax season to donate so that you can get a good idea of what you'll be making for the year. If you donate $10,000 for year 2 right after you get done paying year 1 taxes you could be way off on your percentage. I say this because it's unknown how much you're going to make year to year. You could donate $10,000 for year 2 but profit 400k, and that means you're donation percentage is way off.

You can donate multiple times throughout the year, but a lot of businesses would rather just do it one time in order to have less paperwork floating around. More moving parts means there is a higher chance of error when it comes to tax season.


Why wouldn't I just pay taxes?
Well you can, it's your choice, but you can either watch what your money is doing for your community, watch children be cured of a disease they couldn't afford to pay for on their own or you can give your hard earned money to the government and not see what it's being used for.

We prefer to donate to something we can see it being used for. Regardless of what you're doing, you're going to be giving the money away during tax season, so why not help someone out or support a cause?




Remember to follow me
https://www.seoclerks.com/user/Razzy


Thanks!

Razzy

Comments

Please login or sign up to leave a comment

Join

Atropia

I'm not sure how Canada operates with this, but this is definitely good insight on some good public philanthropy.

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

ArtOverHomework

That's awesome that you can do that. That way you can actually put your money towards something you believe in instead of it not having any control over where it is used. Personally I would probably donate to helping military veterans get jobs, medical treatment, etc. Or to a business which is trying to end human trafficking.

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

johnfranklin1

It is a nice idea to share your revenue with people who deserve it. I would love to donate money to charities rather than paying the taxes. In this way, i would have an idea and satisfaction that my money is going in the right hands.

We would not have to pay a large amount of money in a sense of taxes and it would not let us feel that we are forced to pay something out of our income. I love this strategy of great United States of America. God bless them.

Razzy has been always sharing useful and beneficial information to the people all over the world. This is called a real writer.

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

overcast

We don't have such options in our side. We mostly have to work on other ways for the tax cut. But that never happens. So it all comes down to how the donation we do on personal money. And then personal taxation can be cut. So it is something complicated in our country. But it's good to see how others are working around the taxes and donation.

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

wallet

I didn't know about this option, I guess this is a great opportunity to help the other people and avoid paying taxes. Pity this is not available and here in my country. I would choose to donate, and I think it doesn't matter to who we donate because a good deed is always a good help for someone!

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

PinkTurtle

Great article! I think that's a great way to help your community. Unfortunately my country does not aloud this. We just have to put up with the fact they are
spending our money in their own benefits instead of helping the community but
that's another subject. I absolutely agree with ideal mike about that I would
much rather give the money to charity to give it to some men that's going to
use it to buy weapons. I hope this can be done anytime soon in my country and again thanksfor the article. Great work!

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

Pixie06

In my country it is compulsory for companies to give back to the society. This legislation was passed about 3 years back and is to be followed by all companies. Those companies also have to pay lower taxes as a result of this. I really like this initiative. I prefer to contribute to the society rather than pay taxes. There are many poor people in my country and helping them brings tremendous satisfaction.

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

Barida

Donations are ways that businesses use to raise up their goodwill as well as make the world a better place, so when I start earning big, I would also be donating not only to avoid taxes but to make the company a good one that cares about humanity at large.

0 7 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

overcast

I agree by donating we get to know about our society more better. And we learn about how the life is something better in that case. I guess giving back process also helps with our society. Not all the time we have to chase the money and worry about money. Some of the time giving back to the people is what builds our life much better.

0 6 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

Corzhens

Over here, the taxation is different that I don’t think donating money to charitable institutions is a good way of avoiding tax payments. I know that accountants have their way particularly with the income tax of professionals but for an employee like me who earns a fixed income I don’t think tax avoidance is applicable because the amount of tax is already deducted from the payroll every month.

0 6 years ago

---

Select a reason you're reporting this comment Cyberbullying and Harassment Threats to Personal Safety Hate Speech Sexually Explicit Content Breach of User Privacy Illegal Service/Offer Spam Scam

Or

Submit

---

Are you sure you want to delete this post?

Delete

Post Comment

Cancel Edit