As a small business owner, you’re entitled to a lot of special privileges and fringe benefits. This holiday season is a great time to use the spirit of giving as a way to help those in need, and an advantage for you as a small business owner is that you can deduct any charitable contributions you make in the name of your business! You can do this as an individual as well, but why not use your business as a way to create awareness for a particular group that speaks to your heart? There are tons of great charities out there, so if you don’t typically make charitable contributions during the holidays or throughout the year, check out Charity Watch for an A-Z list of some of the top-rated charities in the US.

Charity Watch is a great resource because they only list the top-rated charities willing to provide you with audited financial statements and annual reports so you can get a clear look at where your dollars and cents are being put to use.

Today the IRS sent out a list of helpful insights that individuals and businesses making contributions to charity should keep in mind.  Note that several important tax law provisions have taken effect in recent years.

Some of these changes include the following: (from www.IRS.gov)

• Special Charitable Contributions for Certain IRA Owners

This provision, currently scheduled to expire at the end of 2011, offers older owners of individual retirement accounts (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity. This option, created in 2006, is available for distributions from IRAs, regardless of whether the owners itemize their deductions. Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans, are not eligible.

To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. Amounts so transferred are not taxable and no deduction is available for the transfer.

Not all charities are eligible. For example, donor-advised funds and supporting organizations are not eligible recipients.

Amounts transferred to a charity from an IRA are counted in determining whether the owner has met the IRA’s required minimum distribution. Where individuals have made nondeductible contributions to their traditional IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions. See Publication 590, Individual Retirement Arrangements (IRAs), for more information on qualified charitable distributions.

• Rules for Clothing and Household Items

To be deductible, clothing and household items donated to charity generally must be in good used condition or better. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to meet this standard if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances and linens.

• Guidelines for Monetary Donations

To deduct any charitable donation of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank or credit union statements, and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid. Credit card statements should show the name of the charity, the date, and the transaction posting date.

Donations of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.

These requirements for the deduction of monetary donations do not change the long-standing requirement that a taxpayer obtain an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet both requirements.

• Reminders

To help taxpayers plan their holiday-season and year-end giving, the IRS offers the following additional reminders:

• Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2011 count for 2011. This is true even if the credit card bill isn’t paid until 2012. Also, checks count for 2011 as long as they are mailed in 2011.
• Check that the organization is qualified. Only donations to qualified organizations are tax-deductible. IRS Publication 78, searchable and available online, lists most organizations that are qualified to receive deductible contributions. It can be found at IRS.gov under Search for Charities. In addition, churches, synagogues, temples, mosques and government agencies are eligible to receive deductible donations, even if they are not listed in Publication 78.
• For individuals, only taxpayers who itemize their deductions on Form 1040 Schedule A can claim deductions for charitable contributions. This deduction is not available to individuals who choose the standard deduction, including anyone who files a short form (Form 1040A or 1040EZ). A taxpayer will have a tax savings only if the total itemized deductions (mortgage interest, charitable contributions, state and local taxes, etc.) exceed the standard deduction. Use the 2011 Form 1040 Schedule A to determine whether itemizing is better than claiming the standard deduction.
• For all donations of property, including clothing and household items, get from the charity, if possible, a receipt that includes the name of the charity, date of the contribution, and a reasonably-detailed description of the donated property. If a donation is left at a charity’s unattended drop site, keep a written record of the donation that includes this information, as well as the fair market value of the property at the time of the donation and the method used to determine that value. Additional rules apply for a contribution of $250 or more.
• The deduction for a motor vehicle, boat or airplane donated to charity is usually limited to the gross proceeds from its sale. This rule applies if the claimed value is more than $500. Form 1098-C, or a similar statement, must be provided to the donor by the organization and attached to the donor’s tax return.
• If the amount of a taxpayer’s deduction for all noncash contributions is over $500, a properly-completed Form 8283 must be submitted with the tax return.
• And, as always it’s important to keep good records and receipts.

Thank you to IRS.gov for providing this information. If you run a small business and are not incorporated, call us and discover how owning a Corporation or Limited Liability Company in Nevada or any of the other 49 states can get you many more deductions than you are allotted as a sole proprietor.

Incorporating just makes sense and Laughlin Associates has been providing incorporation services since 1972. We know how to help and get you the asset and liability protection plus the tax savings that you and your company deserve.

NEW YORK, NY– Laughlin Associates, a premier incorporation services provider, has been selected for the 2011 Best of Carson City Award in the Incorporating Companies category by the U.S. Commerce Association (USCA).

The USCA “Best of Local Business” Award Program recognizes outstanding local businesses, like Laughlin Associates, throughout the country. Each year, the USCA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2011 USCA Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.

About U.S. Commerce Association (USCA)

The USCA was established to recognize the best of local businesses in their community. Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.

About Laughlin Associates

Laughlin Associates is considered one of the foremost leaders in the corporation and LLC formation and management business. Laughlin Associates has helped over 80,000 business owners achieve their dream of business ownership. Our simple, straight-forward and comprehensive system will allow you to establish the solid foundation that you need for explosive growth in your business. We provide on-going support including current and relevant resources and educational opportunities to help small business owners start, grow and build their companies. Laughlin has been the trusted incorporation services provider for thousands of small businesses since 1972.

SOURCE: U.S. Commerce Association

Carson City, NV—CEO SPACE, the largest entrepreneur support program in the world, has exclusively endorsed Laughlin Associates as the premier incorporation services provider for small business owners looking to form an LLC or Corporation.

 Says CEO Space Founder Berny Dohrmann, “CEO SPACE has created what we call Trade Show 3.0. This revolutionary model of cooperative capitalism ensures that the diverse needs of our members are constantly being met. The 5 times per year CEO Space forums bring together hundreds of business owners, angel investors, and corporate leaders in a community of support with a focus on hyper-growth opportunities  There is no selling, just sharing, and potential clients can decide if the math makes money sense for their business.”

Many Laughlin clients have benefited from CEO SPACE affiliation for years but with this alliance they now formally endorse Laughlin Associates as their exclusive incorporating recommendation for their 80,000 members nationwide. Laughlin offers Corporation and LLC formation in all 50 states in the U.S.

Aaron Young, Laughlin Associates’ CEO, is particularly encouraged about the CEO SPACE endorsement, “Our two teams have now become one family and we love supporting one another’s customers with a kind of sacred regard for entrepreneurs.”

Young will now participate on the prestigious CEO SPACE faculty board, where he will teach along-side the likes of Les Brown, Bob Proctor, T. Harv Eker and other well-known professional speakers and business coachs specializing in the “Law of Attraction.”

Young further explained how the affiliation between CEO Space and Laughlin Associates is such a natural fit for small business owners looking to accelerate their wealth and success.

“We know how hard it is to run a small business. I’ve been there. I live this every day. At Laughlin, we help remove the burdens associated with running a business. Our goal is to help you speed things up and help you make a lot of money faster. We believe the affiliation with CEO SPACE is a recession buster for all of our customers. Our clients can prosper in the double dip and we plan to make sure they do,” Young concluded.

The partnership between Laughlin Associates and CEO SPACE will provide clients with the opportunity to reclaim some tax dollars, substantially upgrade their business skills, improve their business plans, open new markets, get new customers, infuse capital into their businesses, develop upgraded branding strategies, and resolve challenges while saving oceans of time and money.

Young believes the materials and training resources found at CEO SPACE to be one of a kind. “The solutions provided at CEO SPACE are truly off the charts from anything small business owners have previously seen.

He continued on to say, “If you want to make more money faster, I can’t recommend CEO SPACE enough. My request to clients is that they explore CEO SPACE as a hyper-growth opportunity – just dip your toe in the water and see if you are not delighted with the help and support you discover from this affiliation. I am really excited about this alliance. Now we can do even more to benefit the clients we cherish so much.”

 For more information regarding the partnership between Laughlin Associates and CEO SPACE contact Shannon John, Marketing Manager, at 1-800-648-0966 or sjohn@laughlinusa.com. All media inquiries welcome.