Businesses can help Japan and save BIG on Taxes

With the constant news coming in from Japan concerning nuclear fallout, the earthquake and tsunami, many are yearning to help the citizens of Japan. If nothing more, the mere photos are gut wrenching. As a business owner, you may be wondering how you can help the citizens of Japan without cutting into your own budget. We all know the US economy is not doing so great but we’ve outlined below five quick and easy tax tips for you to be able to donate to the citizens of Japan and still keep your everyday spending as low as possible:

• Buy your business supplies from organizations that will donate a portion of the proceeds to Japan. Many small businesses are teaming up with non-profit organizations that are willing to give a percentage of the proceeds from everyday items to non-profit organizations, who are in turn donating to the relief efforts in Japan.
• Use a portion of your small business advertising budget to donate to the relief efforts in Japan and still get a small business tax break. As a small business, you may notice that a lot of people want to do business with companies that support humanitarian efforts. If you use a portion of your small business advertising budget to donate to Japan and make sure your customers know about it, it’s highly likely you’ll generate more business. A simple tag line in your emails or other marketing materials that are sent to customers could notify them of this.
• Simply donate to an organization that supports the relief efforts in Japan and get a tax deduction. This charitable donation can be used as a tax write-off. Most small business are looking for ways to lower their income taxes and what better way to do so then to have your small business donate to the relief efforts in Japan.
• Create a non-profit organization of your own and use it to donate directly to the relief efforts in Japan. A really smart small business strategy is for the owners of the business or the small business to create a non-profit organization that runs alongside their for profit business. This is a great income tax strategy that can be used to lower your small business income taxes and give you a great opportunity for a tax write-off. You can have your small business donate to your non-profit organization and get an upfront tax write-off which will lower your small business income taxes. The money you donate to the non-profit can be used to further your efforts to assist with the relief efforts in Japan according to how you want them to be used. You may want to donate to help feed the citizens of Japan, you may want to donate to help with the nuclear reactors or you may want to help with the flooding that occurred after the Tsunami. Either way, having a non-profit as a small business owner makes great tax sense and will help you lower your small business taxes.
• Run a marketing campaign to help raise money for the relief efforts in Japan. Make an announcement to your customers that on a particular day, you are willing to donate a percentage of your business proceeds to the relief efforts in Japan. You will see a surge in business and then will get a small business tax deduction by making the donation. This is a win-win situation for you, your customers and Japan.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.