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Thread: Donations and the IRS

  1. #51
    Join Date
    Apr 2004
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    Lakeland, Florida
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    2,144

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    I think ford can deduct labor costs paid to the auto workers.
    It is part of what the car costs Ford.
    If an artist pays someone to cut wood , do the turning, do the sanding etc those paid labor cost would be deductible.

    If the Ford auto workers donate their time to make a car as a group project, the labor would not be deductible.

    Key word in your question was "expense"... C

    Al

  2. #52
    Join Date
    Jan 2005
    Location
    North Central Texas -- Dallas / Fort Worth Metroplex
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    If I had some creative ideas about ways to lower my taxes and my CPA nixed those idea, I would listen to him since I believe that he knows what he is talking about -- that is the reason that I use his services. I am pretty sure that I would not "go over his head" by asking my woodturning friends, fellow club members, or get online to gather "opinions" from even more woodturners on the subject.
    Bill Boehme
    My Photo Gallery

  3. #53

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    It is fun to read though. My brother, who use to work for the IRS, has told me some really funny things people do and excuses people give.
    Hopefully one day our tax structure will be revamped and simplified. But until then...

  4. #54

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    Bill, dont forget that I am my own best charity. I dont have the 200 to write that check. The gift cert has no cash value. If they use it for a piece under $200 fine. No change. So far the buyers know who I am and have been thrilled to get a $200 discount. There is no income. Between the gallery and myself we lost $200 in income. Unless the charity tells me what it sold for I have no idea. And I dont recall one telling me. And no buyer has told me what they paid for it. I just know when redeemed I gave away $200. Thats how I see it anyway. I get a note on a monthy statement if one has been redeemed. The gallery puts the whole thing on me as they just gave the discount. The minus $200 is in my records.
    The older I get the more confused I can get when doing my taxes. I have to pull out several years to see what went where. And then I have to see if the new forms have been changed. Read any new changes to small business deductions. Everytime I have been called on something it was my mistake. Knock on wood its been easy to take care of. Mostly its me not triple checking math. So you get the IRS letter which is instant fanny puckering. You go through what they say and pull out all the forms and hit the calculator hoping they are wrong. You make notes for next year. Raise the amount you need to pay in estimated tax. Sigh, and put it all back in the file.

  5. #55
    Join Date
    Jan 2005
    Location
    North Central Texas -- Dallas / Fort Worth Metroplex
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    So far, my won - loss record is 1 - 0 with the IRS, but it still draws the pucker string pretty tight to see a letter saying that I owed about twice my income in taxes and please send it in within the next 30 days. And, why iss it that letters like this come at the start of a weekend so that you get to panic until the following week to get things cleared up. All that I got from them in reply was a letter saying "disregard the previous letter". No apology, no flowers.
    Bill Boehme
    My Photo Gallery

  6. #56

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    Bill, Like you I did not even even get kissed. At least these days unlike the 70s there is a thing stating if you disagree with our findings. Then they give you info to state your case. But some of us older folks recall when the notice said pay now or not only face an audit but prison time. So no wonder some of us get excited. Its hard to forget the old gestapo tactics.
    I am one of just a few full time turners out there in the world. John Jordan said recently he got into this for the groupies, fast cars and big houses. Made me laugh and I thanked him for it.
    But to be straight forward in this I am kind of old school in that I fear the IRS because of past experience. So I dont take undo chances. If I am wrong in a deduction I make it square. But even the supreme court says a person does not have to pay more taxes than he has to. So you look at all legal ways to lower your tax obligation. I do think thats why this thread was started.

  7. #57

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    As is the case with most things in this world. It's all about the wording and terminology you use to describe your deductions.

  8. #58
    Join Date
    Jan 2005
    Location
    North Central Texas -- Dallas / Fort Worth Metroplex
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    Quote Originally Posted by KellyDunn View Post
    ... John Jordan said recently he got into this for the groupies, fast cars and big houses. Made me laugh and I thanked him for it.
    I thought it was fancy cars and fast women or is it the other way round?
    Bill Boehme
    My Photo Gallery

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