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Tax Law (Questions About Taxes)/charitable donations - can no longer itemize


I am a sole proprietor, my wife helps but is not an employee or partner at the moment.

On our 2013 return we were able to itemize because of medical expenses and barely exceeded the standard deduction, which means our charitable donations gave us little benefit.

In 2014 we expect to have even fewer medical expenses. I hate to stop giving but with no tax benefit, it is hard to justify donating.

Is the only option available lumping all of our donations in one year to exceed the standard deduction? Would forming a partnership or corporation give me additional options?


Thanks for your question.

You must deduct the charitable contributions in the year the donation was made.  However, many people in your situation "bunch" their contributions. Give nothing in one year, then double the next.  To facilitate that, you could have a saving account where you keep the contribution monies, then withdraw the funds when you are ready to make the contribution.

Forming a partnership. S corporation (or LLC) would be of no benefit, as the contributions would simply be passed on to you as the owner to deduct on your 1040.

If you formed a corporation, you could deduct up to 10% of the corporate modified net income for charitable purposes.  However, this would also mean that the remaining income would be subject to corporate income tax.  If you paid yourself a dividend, that would be after corporate taxes and you would be subject to personal tax as well.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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