thread Re: gift cards in Archived Discussions (Read Only)

gift cards

jubileefarm — Wed, 04 Apr 2018 16:24:15 GMT

I want to give a couple of gift cards to local charities for raffles/silent auctions. How do I load the gift card for, say, $25 without receiving any money? Does this create a book-keeping problem, and is there a way to tag these cards as charitable contributions for tax purposes? Thanks!

Re: gift cards

ACAcatering — Thu, 05 Apr 2018 00:04:33 GMT

I can't answer about loading the gift card, but may have some insight into your tax deduction. The best answer is to ask your CPA, but I can tell you how it works with us. Because you aren't "technically" giving any form of monetary donation, there isn't anything to write off. You are basically giving your goods and services which works itself into your tax return because you aren't taking a payment for said goods and services. For example, say you purchase your goods to sell, don't take any money for those goods, but donate them instead. You still spent the money, but it you get nothing back for it. That number will come out of your gross income at the end of the year. Generally, you will owe Uncle Sam a little less.

Re: gift cards

ACAcatering — Thu, 05 Apr 2018 00:06:11 GMT

So...bookkeeping...probably not. Inventory? Maybe...unless you do a sale as a ".00" payment that still takes it out of inventory.

Re: gift cards

jubileefarm — Thu, 05 Apr 2018 01:19:47 GMT

Thanks for the answer! I see your point, my profit will just be a bit less. I'm still a little hazy on putting credit on a gift card but not really selling it . . .

Re: gift cards

VanKalkerFarms — Thu, 05 Apr 2018 01:52:52 GMT

you can ring the card up like normal but then either apply a 100% discount or an equal dollar amount discount and the card will still load and the transaction will be for $0.