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January 31, 2020
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Shipping Costs I Cover for a 501(c)(3). Where to deduct?

  • January 31, 2020
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One of my customers is a 501(c)(3) animal rescue. They purchase, at regular price, stuffed animals I sew from my small business (I am self-employed).  I cover their shipping to help defray costs to the rescue. Can I write off the shipping charges ($250) as a charitable contribution? Or do I just deduct as a business expense on my Schedule C? Or?

Thank you.

    Best answer by DavidS127

    Deduct the shipping cost as a business expense on your Schedule C.  The value of the shipping versus the total sales price of the merchandise is probably relatively small, so essentially what you did is negotiate a discounted price for a certain class of customers.

    1 reply

    DavidS127
    DavidS127Answer
    January 31, 2020

    Deduct the shipping cost as a business expense on your Schedule C.  The value of the shipping versus the total sales price of the merchandise is probably relatively small, so essentially what you did is negotiate a discounted price for a certain class of customers.

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