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oldhammer
Level 1

How to handle expensing political contributions in a business?

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? 

Solved
Best answer February 03, 2024

Best Answers
Rainflurry
Level 15

How to handle expensing political contributions in a business?

@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.

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1 Comment 1
Rainflurry
Level 15

How to handle expensing political contributions in a business?

@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.

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