Writing Off Charitable Contributions in Your Business - 90 Days of Taxes Day 12 (Taxes 2026)

What is the difference between a charitable contribution and a business expense paid to a charity? Are you properly categorizing these transactions to prevent overpaying in taxes?

Writing off charitable contributions in a business is not as straight forward as it may seem. There are limitations to writing off donations and depending on how your business is taxed you may need to take the deduction on your personal return.

C-Corporations can deduct their charitable contributions on their return, but they are subject to a 10% cap. For 2026 and future years there is a floor, in other words if you do not reach at least 1% in your taxable income as charitable contributions you cannot deduct any chartiable contributions. All other types of for profit businesses are required to pass charitable contributions to the owner(s) of the business who can then deduct them on their personal tax return on Schedule A.

Our 90 Days to Taxes series helps entrepreneurs avoid the most common small business tax mistakes to avoid. From disorganization to clarity, over 90 days you'll discover how your business is taxed and optional tax elections, what taxes and forms you need to file, how your records should be kept, what you can write off and the tax deductions small business owners miss. This video is from our 2026 Taxes series, information is relevant to the 2026 tax season filing for the 2025 tax year.

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Happy Taxes!