Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 2 down vote favorite

I have a small sole proprietorship in the U.S. When I do my taxes at the end of the year I deduct my business expenses from my sales to figure about my taxable income. For example, I deduct my web hosting costs.

If I donate money to an open source software project that is not a 501(c)(3) (or anything else like that), can I deduct this as a business expense?

share|improve this question

1 Answer

up vote 2 down vote accepted

No, you cannot. You can only deduct charitable contributions if they're to an organization recognized by the IRS, and that goes on schedule A. You can deduct business expenses if they're ordinary and necessary, and that goes on schedule C. Your donation is neither charitable nor necessary, thus non-deductible.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.