As a freelance artist can I donate services at a dicounted rate to a business or charity and claim it tax time

Question

If i lower my rates I start loosing money, is it possible to use this as a donation and then claim that donation on my taxes so that I would not be taxed on the lower rate? Where should i be looking to find more information on this? Should I be talking to lawyers, accountants or someone else?

Answer 1

Ask your accountant.  I think I know the answer, but I hate to give you wrong information.  As a freelancer, you should have an accountant anyway.  He or she can help you maximize your deductions and avoid getting audited.  Because of the war, the IRS is auditing everyone they can, and you need to protect yourself from this.  I've always kept very good business records, but my accountant is telling me good isn't good enough anymore, that my records have to meticulous and perfect.