How to handle expensing political contributions in a business?

oldhammer · ‎February 03, 2024

Yes, I know they are not deductible, but that does not help expense them out.

How do I handle inputting them into QB?

As a vendor, yes, what category? Set up a new Account named Political Donation. What type is it?

This seems to be as cloudy as you can get. Is it handled as an owner's draw? What about the Corps?

Rainflurry · ‎February 03, 2024

Set up an 'Other expense' account called Non-deductible Campaign or Political Contributions and use that. The contribution will still show as an expense on your P&L (as it should), but your CPA/tax accountant should know not to deduct them on your return. Assigning the contribution to an other expense account moves the contribution off of your income from operations to the bottom of your P&L so anyone reviewing your financials can see that.

View solution in original post

Rainflurry · ‎February 03, 2024

@oldhammer

Set up an 'Other expense' account called Non-deductible Campaign or Political Contributions and use that. The contribution will still show as an expense on your P&L (as it should), but your CPA/tax accountant should know not to deduct them on your return. Assigning the contribution to an other expense account moves the contribution off of your income from operations to the bottom of your P&L so anyone reviewing your financials can see that.

Topics

Training

Community

Resources

How to handle expensing political contributions in a business?

How to handle expensing political contributions in a business?

How to handle expensing political contributions in a business?

how to handle a pass thru expense

Employer 401(k) contribution that's not a match

Company HSA Contribution Expense Tracking

Paid business expense with personal account

I'm trying to figure out how to add employer contribution for Roth 401K

Need to get in touch?