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February 3, 2024
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How to handle expensing political contributions in a business?

  • February 3, 2024
  • 1 reply
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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? 

    Best answer by Rainflurry

    @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.

    1 reply

    Rainflurry
    February 3, 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.