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  • 1.  Receipt for S Corp?

    Posted 04-14-2023 03:47 PM

    I have a request from a donor that I haven't come across before and am not quite sure how to proceed.

    A local professional provided a specific training course to our program participants and is asking us for a letter from our organization with the number of participants he taught, the total price (price per participant taught x total participants) as well as our tax ID no. He's asking for it in the context of a tax write off by request from his accountant. I believe there is no tax deduction allowed for the donation of his time and when I asked for further clarification he speculated his accountant may have asked for it because he is an S corp rather than the LLC he previously was.

    I want to provide him with as much as I am allowed, but feeling a little out of my depths! I appreciate any expertise from this group!



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    Anne Pires
    Year Up
    apires@yearup.org
    ------------------------------


  • 2.  RE: Receipt for S Corp?

    Posted 04-14-2023 05:02 PM
    There is nothing wrong with providing a vendor a letter listing the details requested, whether they are an S Corp, C Corp, LLC, or Sole Proprietor. It's just a letter stating facts. It's not a tax receipt - he didn't even donate the services, you paid for them. 




    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 3.  RE: Receipt for S Corp?

    Posted 04-17-2023 06:03 AM

    Hi,

    Thank you for the input! I think I was unclear, we didn't pay for the service, he provided what the cost would be per participant if it was not provided pro bono.

    -Annie



    ------------------------------
    Anne Pires
    Year Up
    apires@yearup.org
    ------------------------------

    Original Message


  • 4.  RE: Receipt for S Corp?

    Posted 04-17-2023 10:26 AM
    Ah, well that does make matters a bit different. The donor has made an in-kind contribution, for which you should provide a tax receipt, but because the contribution of service itself is not tax-deductible to the donor, there is no write-off available, beyond things like travel costs. You should not further value the gift in a letter like this, though you can provide participation numbers. 

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 5.  RE: Receipt for S Corp?

    Posted 04-18-2023 08:39 AM

    Thank you so much, Isaac! To clarify, should we put the valuation that he provided on the receipt we generate for him?



    ------------------------------
    Anne Pires
    Year Up
    apires@yearup.org
    ------------------------------

    Original Message


  • 6.  RE: Receipt for S Corp?

    Posted 04-18-2023 08:53 AM
    No, an in-kind receipt should not have a valuation of the donated service or property on it. 

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


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