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Rob
09-01-2004, 11:23 PM
My partner and I have recently decided to enstate a program as a philanthropic service of our LLC that would provide free web sites, web hosting, and physical art supplies to struggling artsists who are accepted via application. I know that I can write off the physical supplies (canvas, printing supplies, etc) as an artistic supplies expense under the sponsorship program, but can I also write off the amount our company charges hourly for web design services as an expense (considering that all it is really costing us is time). I suppose that I would keep this type of expense monitored with a budget on an internal company account and for all practical purposes, bill the company for services rendered to itself with reference to the sponsored artist, and then write this off as an expense in some kind of donation account. Does this sound alright in terms of legality or might this turn into an audit nightmare if the IRS views it as a way to keep earnings down and decrease tax liability? If you have any ideas please respond. Thank you.

Jade456
10-06-2004, 09:08 PM
Best to consult a tax specialist. You definitely don't want to guess when it comes to the IRS.

FlemmingBusinessServices
10-17-2004, 09:07 PM
Hi, Rob ~

Unfortunately, you can't write-off the services portion of your contribution. The IRS is really clear on this and aren't soon to change it. Their view is that the charge for services is highly subjective. Therefore, the IRS will not allow you to write-off the fees you would normally charge for those services.

You can, however, claim any products (only the cost, no mark up) you may donate to a charity.

dvdnesbitt
05-29-2005, 02:20 PM
Fleming has it right.....you cannot write off the services.

From: reef.org/fieldsurv/tax.htm (Works the same way as yours would, though...the point is time/services are not deductible.):
"The value of your time and services, however, is not deductible; nor are any personal expenses unrelated to the Field Survey. If you stop to visit friends of family, or to sightsee, on the way to or from the Field Survey location, your transportation costs must be prorated accordingly."

pandandesign
01-18-2014, 03:34 PM
You can write off the supplies on which you have spent to use for your business. However, I would go to the IRS website to make sure what items can be tax deductible. For service, I don't think you can write off because that's part of the regulation that services cannot be written off. I would suggest that you go to the IRS site about tax deductible and what can be write off and what can not be.

Sunshinegurl
01-18-2014, 10:34 PM
Write off, lol! Your best to go straight to the source which would be for you, the IRS website! Better to be safe then sorry. Best of Luck:-)

delusional
01-19-2014, 04:05 AM
Hi, Rob ~

Unfortunately, you can't write-off the services portion of your contribution. The IRS is really clear on this and aren't soon to change it. Their view is that the charge for services is highly subjective. Therefore, the IRS will not allow you to write-off the fees you would normally charge for those services.

You can, however, claim any products (only the cost, no mark up) you may donate to a charity.

Can't you deduct the taxes on the services?

Rob, are you building the websites or are you offering the artists to pay for them? If you are building them yourself, there probably isn't a lot to write-off but if you are purchasing the services of someone else, I think it might be possible to deduct the tax.

CliffLife
01-21-2014, 10:42 PM
My partner and I have recently decided to enstate a program as a philanthropic service of our LLC that would provide free web sites, web hosting, and physical art supplies to struggling artsists who are accepted via application. I know that I can write off the physical supplies (canvas, printing supplies, etc) as an artistic supplies expense under the sponsorship program, but can I also write off the amount our company charges hourly for web design services as an expense (considering that all it is really costing us is time). I suppose that I would keep this type of expense monitored with a budget on an internal company account and for all practical purposes, bill the company for services rendered to itself with reference to the sponsored artist, and then write this off as an expense in some kind of donation account. Does this sound alright in terms of legality or might this turn into an audit nightmare if the IRS views it as a way to keep earnings down and decrease tax liability? If you have any ideas please respond. Thank you.

It's quite unfortunate for honest people trying to give a lending hand, but you cannot write off your services. The IRS definitely puts this as a no no. A huge reason why they won't allow or EVER allow services to be write offs is due to the fact that just as the government, people themselves are far to greedy as well. People would be writing off things for services that never happened and it's easy to manipulate proof for that. There would be far too much fraud if they allowed it, which is why they do not.

ap4aaron
01-23-2014, 07:09 PM
It's always very risky to dodge taxes. You can talk to a specialist that is great at taxes, or contact a consulting service. Avoiding taxes could get you in jail.

novasparker
01-26-2014, 10:41 AM
I think that it boils down to what you can document. The IRS likes to operate in the world of black and white. As far as business expenses go, we have the ability to write off the supplies that we purchase, but not the time we spend doing the work. For instance, we did a home remodel for a local family that experienced a fire. We didn't charge them anything for supplies or work and when we did our taxes, we got to count the suppiles we purchased as a write off but not the "donation of our time and expertise". I guess that's the price of being a good Samaritan.

cpefley
01-26-2014, 10:57 PM
You time devoted to your business is not a deductible expense. You should really get professional tax help before doing your taxes, because you wouldn't want to write off something that isn't deductible. Many tax professionals offer a guarantee that they will deal with audits too. Unless you have taken tax preparation classes, it is very hard to do your own taxes when you own a business.

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04-16-2021, 03:03 PM
It's always very risky to dodge taxes.

Bigil
04-19-2021, 10:10 AM
You can write off the supplies on which you have spent to use for your business. However, I would go to the IRS website to make sure what items can be tax deductible. For service, I don't think you can write off because that's part of the regulation that services cannot be written off. I would suggest that you go to the IRS site about tax deductible and what can be write off and what can not be.

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shunny0007
06-11-2021, 02:05 AM
I would suggest that you go to the IRS site about tax-deductible and what can be write off and what can not be.

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