How to post charitable contributions

[DTS]

What is the proper way to post charitable contributions for an LLC filing as a partnership? Is it an expense acct. and do I show it as such or equity and show it on the b/s and make a manual entry on Sch K?

Although it's been drummed into my head, something is keeping me from grasping this one, at all. I know where it goes on the return, but not sure how it should get there by way of the reports a client gives to me.

Can someone show me the proper dr/cr for this.

D

[S T]

where are the Partnership - S corp posters

Bumping this up, hoping B Hoffman, Snags,Gretel or someone can answer this.

Sandy

[DTS]

Sandy

Thanks for the bump! I know everyone is really busy now. Maybe tonight or tomorrow on a coffee break.

Thanks again, Sandy.

D

[taxea]

I know a 1120S transfers the donations on the K-1 doesn't a partnership do the same? If so it stands to reason that it goes onto the line for non-deductible items.taxea

[DTS]

I know a 1120S transfers the donations on the K-1 doesn't a partnership do the same? If so it stands to reason that it goes onto the line for non-deductible items.taxea

Yes, but what I'm reading is telling me to make this an expense acct., which would make it deductible.

So, are you thinking this should this be an equity acct, with a manual entry onto Sch K?

D

[JG EA]

I just always put contributions in as an expense account. You know that the adjustments on the return (SCorp etc.) show the book income INCLUDING the contributions so it would be a lot of work and worry to put it into equity.

On Sch C clients I do sometimes put into equity under a special account labeled as contributions. Especially with the really generous contributors so they don't think their porfit is smaller than it is.

[S T]

Charity on Partnership

But am I wrong, The Charitable deduction for tax purposes is not a deductible expense on the front of the form 1065 that flows to the K-1 line 1. It is a pass through to the partners on K-1 line 13 that they deduct on their own personal tax return, Schedule A and flows through from the Schedule K, line 13.

Dennis, aren't you asking about how to record in the accounting, such as Quickbooks? You want to know whether or not the Charitable Contribution shows on the Profit and Loss Report as an expense, or it shows on the Balance Sheet?

Sandy

[DTS]

It is a pass through to the partners on K-1 line 13 that they deduct on their own personal tax return, Schedule A and flows through from the Schedule K, line 13.

Dennis, aren't you asking about how to record in the accounting, such as Quickbooks? You want to know whether or not the Charitable Contribution shows on the Profit and Loss Report as an expense, or it shows on the Balance Sheet?

This is exactly what I'm asking.

D

[JG EA]

But am I wrong, The Charitable deduction for tax purposes is not a deductible expense on the front of the form 1065 that flows to the K-1 line 1. It is a pass through to the partners on K-1 line 13 that they deduct on their own personal tax return, Schedule A and flows through from the Schedule K, line 13.

Dennis, aren't you asking about how to record in the accounting, such as Quickbooks? You want to know whether or not the Charitable Contribution shows on the Profit and Loss Report as an expense, or it shows on the Balance Sheet?

Sandy

You are right. But the M-1 figures the book income with page one and some of the stuff on page 3 (Sch K). So that shows that it is an expense account of the books of the S Corp for instance.

[Gretel]

I think charitable contributions from a partnership are treated the same as guaranteed payments, expense on the books and then a separately stated item on Schedule K.

[DTS]

Thanks

to all who have jumped in. I really appreciate your input!

D

[JCH]

I agree with Gretel. Expensed on the books, and a separately stated item on Sch K passed out on the K-1 to the partner/shareholder/member.