How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jax Tax Your Own Question
Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
59761513
Type Your Tax Question Here...
Jax Tax is online now
A new question is answered every 9 seconds

i have a client who has an llc. he donated a large amount

Customer Question

i have a client who has an llc. he donated a large amount of gravel, dense grade, dozer hours etc to his church through his llc. on the noncash donation form for the llc. where does that amount flow to? i don't see it on the k-1's. thanks
Submitted: 4 years ago.
Category: Tax
Expert:  Jax Tax replied 4 years ago.

Jax Tax : The value or current basis of the non cash items affect the net income which flows to the k1 line 1. If the donation is limited because of limitations or net profit, then it is reported on the k1 as an item effecting basis, bit I don't think that is what you are asking.
Jax Tax : It is not on the k1. It reduces line 1 income.
Jax Tax : Or profit I mean.
Jax Tax and other Tax Specialists are ready to help you
Expert:  Jax Tax replied 4 years ago.
If there was a loss, donations are not allowed. Just like any other item removed from the tax book, it affects the outside basis.

Related Tax Questions