Just to add a bit more detail to the corporation tax calculation... The fast food chain making $30m profit would normally pay: $30,000,000 × 21% = $6,300,000 in federal tax After donating $1.75m: Taxable income becomes $28,250,000 New tax is $28,250,000 × 21% = $5,932,500 Total tax savings: $367,500 So the govt "loses" $367,500 in tax revenue, while charities gain $1.75m. The company is still out-of-pocket $1,382,500 after tax benefits. Doesn't seem like a pure tax dodge to me.

This is exactly the kind of breakdown I was hoping for! So if I'm understanding correctly, the whole "corporations donate to avoid taxes" narrative is pretty misleading. They're still spending significantly more than they save, even with the tax benefits. One thing I'm curious about though - you mentioned the 25% limit on charitable contributions. Does that mean if a company wanted to donate more than 25% of their taxable income in a single year, they wouldn't get the full deduction? And what happens to the excess - can they carry it forward to future years? Also, are there any restrictions on what types of organizations qualify for these deductions? Like, could a fast food chain start their own "food education foundation" and get the same tax benefits while basically promoting their own interests?

I'm sorry for your loss as well. Reading through this conversation has been really educational - I had no idea there were so many resources and methods available for valuing charitable donations of medical equipment. The depreciation approach everyone has outlined makes total sense, and it's reassuring to see actual tax professionals confirming that this is an accepted method. I'm bookmarking this thread because I suspect I may need this information in the future as my elderly parents have accumulated quite a bit of medical equipment over the years. One thing that really stands out to me is how important the documentation seems to be. It sounds like having a clear paper trail with photos, receipts, and your calculation methodology is just as important as getting the "right" number. The IRS seems to value transparency and good faith effort in determining fair market value. Thank you to everyone who shared their experiences - especially those who went through similar situations and the CPA who provided professional guidance. This is exactly the kind of practical, real-world advice that's so hard to find elsewhere!

As a newcomer to this community, I want to thank everyone for this incredibly detailed and helpful discussion! I've been lurking here trying to learn about tax issues, and this thread perfectly demonstrates why this community is so valuable. What strikes me most is how you all turned what initially seemed like a complex valuation problem into a clear, step-by-step process. The combination of practical experience from people who've actually donated medical equipment, professional guidance from the CPA, and specific documentation tips creates such a comprehensive resource. I'm particularly impressed by how thorough everyone has been about the documentation requirements. It's clear that having good records is just as important as getting the valuation right. The checklist approach - original receipts, photos, depreciation calculations, comparable research, and proper charity acknowledgment - gives such a clear framework for anyone facing this situation. For someone like me who's never dealt with charitable donations beyond simple cash contributions, seeing the real-world application of depreciation methods and IRS thresholds has been educational. The $3,400 valuation using conservative depreciation rates seems very well-supported given all the research and professional input. This is exactly the kind of practical, community-driven advice that makes complex tax situations manageable. Thank you all for sharing your knowledge and experiences!

Might be a dumb question but does taking online classes from your home country count as being "present in the US" for the substantial presence test? I was stuck in my home country during part of 2022 due to COVID but still enrolled in US university online.

Just wanted to add some clarity about the 5-year exempt period for F-1 students since there seems to be some confusion in the thread. The 5 calendar years start counting from the first year you were present in the US on F-1 status, regardless of how many days you were actually here. So for the original poster who first entered in 2019, your exempt years would be 2019, 2020, 2021, 2022, and 2023. This means 2024 would be your first year where days count toward the substantial presence test. However, since you were only present for about 240 days in 2024 (and this is your first countable year), you likely don't meet the substantial presence test yet and would still file as a non-resident alien using Form 1040NR. One important thing to remember: even as a non-resident alien, your US-source income (like your on-campus job) is still fully taxable. You'll report this on Form 1040NR, and depending on your home country's tax treaty with the US, you might qualify for certain exemptions or reduced tax rates.

I've been running a consulting business for about 4 years now and went through this exact same dilemma! The IRS rules can definitely feel frustrating when you're trying to grow your business. What ended up working for me was restructuring how I thought about the problem. Instead of trying to deduct household help directly, I focused on maximizing every legitimate business deduction I could find, which freed up enough cash flow to afford the personal assistance I needed. Some things that helped: I started properly tracking my home office square footage (was way underestimating before), began deducting business use of my car for client meetings, and hired a bookkeeper who handles all my business finances and tax prep. The bookkeeper alone saves me 5-6 hours per month that I can now spend on billable work. I also set up a dedicated business phone line and use scheduling software that automates a lot of client communication - both deductible business expenses that genuinely save time. The key is making sure you're capturing every legitimate business expense first, then using that tax savings to fund the personal support you need to scale up.

I went through this exact same frustration when I started my freelance marketing business! The tax rules around personal vs. business expenses can feel so arbitrary, especially when you can clearly see how household help would directly increase your earning potential. After working with a tax professional, I learned that the IRS is pretty strict about the "ordinary and necessary" test - the expense has to be something that's typical for businesses in your industry AND directly related to business operations, not just helpful for freeing up your time. What actually worked for me was taking a two-pronged approach: First, I made sure I was maximizing every single legitimate business deduction (home office, business meals, professional development, etc.) to free up more cash flow. Second, I restructured part of my household help as a legitimate business assistant role - someone who handles my client scheduling, follows up on invoices, manages my business social media, and yes, also helps with some household tasks. I only deduct the portion of their time spent on actual business functions, and I keep detailed time logs to document the split. It's not a perfect solution, but it helps offset some of the costs while staying completely compliant with tax law. Sometimes you have to get creative within the boundaries rather than trying to push past them.

I'm in a similar boat as an 18-year-old trying to figure this stuff out! One thing that's helped me is understanding that even though you made a profit, you're probably way below the income threshold where you'd actually need to file taxes. The standard deduction for 2024 is $14,600, so unless you're making close to that from all sources combined (gig work + ticket sales + anything else), you likely don't need to file at all. That said, I'd definitely keep records of the transaction just in case. Save your original purchase receipt and the StubHub payment confirmation. If you do end up needing to file taxes later in the year because your gig work picks up, you'll want to have everything documented. The good news is that at our age, the IRS really isn't worried about small amounts like this. They're focused on people who are clearly avoiding taxes on substantial income. But it's smart that you're asking these questions now - understanding this stuff early will make your financial life so much easier as you get older!

As someone who's been helping people navigate these situations for years, I think you're getting great advice here! Just to add a practical perspective - since you're 18 and this is your first time dealing with tax questions, I'd recommend treating this as a learning opportunity even though the amount is small. The $44 profit you made is technically taxable income, but as others mentioned, you're likely well below the filing threshold if this is your main income for the year. However, I'd suggest keeping detailed records of both the purchase and sale (screenshots, PayPal confirmations, etc.) because good documentation habits will serve you incredibly well as you start earning more. One thing I'd add - if you continue doing gig work throughout the year, you might cross that $14,600 threshold and need to file. In that case, having all your income sources documented (including this ticket sale) will make the process much smoother. Also, don't feel bad about not knowing this stuff! The tax system is confusing, and most 18-year-olds haven't had to deal with it yet. You're being smart by asking questions now rather than figuring it out the hard way later. Consider this a good introduction to the world of tax responsibility!