Tweet
I will be receiving $1000 worth of supplies (toys/etc) from my local R&R agency. I will not be actually be receiving the $1000, but the equal equivalent in supplies. Am I able to still claim/deduct the cost of the toys after I receive them, even if I didn't pay for them?
-
-
I often get donations. I claim them as income in the amount, then claim them as if I had spent that income on toys for my business. In most cases you can claim the entire amount of individual toys. If some of them are worth more than $200 (it might be $500), I would talk to Tom about whether you have to depreciate them.
It's kind of a wash, really. The only way it wouldn't be is if you give some of the toys to your own kids (if you have them) and don't allow use by daycare. Then you would need to claim them as income, but deduct less. -
Just bumping up in hopes Tom chimes in....thanksComment
-
Grant
You should report $1,000 as income on your Schedule C. Then claim a deduction for the items on Schedule C based on how you use them. If they are individual items that are used more than 50% for your business, deduct the business portion using the Section 179 rule on Form 4562 (then transfer to Schedule C).Comment
Comment