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December 2003
Posts: 13997
Location: Upper Left USA | Waiver - all answers are non-binding and will require checking out in your region by qualified people, etc., ad noseum...
Am I missing out on some major tax benefits by not filing correctly?
I play in church (volunteer, hobbyist, donation)and I don't receive a salary. I do fix and find instruments for myself and others. A large portion of my home is cluttered, er, used to support my ministry. I write, perform and support others that are "professional Musicians".
I have never deducted any of this in my taxes, am I missing the boat? |
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Joined:
December 2006
Posts: 6268
Location: Florida Central Gulf Coast | No expert here... I don't think you can benefit taxwise from your church activities except for expenses qualified as 'donations' (i.e. gas/mileage).
But the rest could be covered under a Limited Liability Company (LLC) document with some impressive bennies!
Hopefully someone will have more helpful info. |
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March 2005
Posts: 2793
Location: Atlanta, GA. | You may just have to do like the rest of us and...
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March 2005
Posts: 5567
Location: Blue Ridge Mountains | Woody: you should definitely check out a tax consultant or CPA...it may be worth the time and expense...worth a try... |
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January 2004
Posts: 1225
Location: Lake Hiawatha, New Jersey | My accountant told me that, in my case, I had to claim a certain amount of the income from gigs in order to take deductions. It ended up working out in my favor this year. I'm not sure how it works when you are donating your time and equipment. I would think that you would be entitled to something. |
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March 2002
Posts: 15682
Location: SoCal | File a form 4868 extention and take a week or two to talk to a tax accountant.... |
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December 2003
Posts: 13997
Location: Upper Left USA | Moody, that's what I'm doing (did).
Colin - That's too funny! |
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October 2005
Posts: 5332
Location: Bluffton, SC | That's exactly what you should do, Mike. I'm an accountant but I would never think of giving tax advice over a guitar forum. I know you were just asking for thoughts on the subject but you really should talk to a pro and get advice for your specific situation in your specific state. If I can help you out at all, feel free to pm me but, again, a real live WA state tax guy is your right move.
My bill's in the mail. |
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Joined:
January 2006
Posts: 1132
Location: NW Washington State | Originally posted by Weaser P:
...a real live WA state tax guy is your right move.
My bill's in the mail. No state income tax in WA, they get their money other ways. So you can give us tax advice- just don't send a bill!
-Steve W. |
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December 2001
Posts: 10583
Location: NJ | as of april 15th I will be known as the "lost Art Vintage Music Ministry" |
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January 2005
Posts: 4903
Location: Phoenix AZ | We need new shirts. Replace the baret with a pope hat. This I gotta see ... |
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October 2005
Posts: 4081
Location: Utah | According to my tax prep software, expenses related to volunteering for a qualified charity are deductible. For example, if you go on a mission trip (like my wife and daughter last summer), you can deduct expenses like renting a vehicle. Stuff you buy for the charity is deductible, so if you buy guitar parts to fix instruments for the church, those expenses would be deductible as a charitable donation of non-cash items.
If the guitar isn't owned by the church, but is owned by a band member, I don't see how you could deduct the cost of parts to repair it. You're giving something to a person, not a qualified charity.
I briefly thought about deducting the cost of my Elite and my daughter's Preacher, since we play them in the church band as part of the youth ministry. Plus the cost of strings, cables, cleaning supplies, amps, etc. They're all expenses I've incurred to volunteer as part of the church's ministry. But somehow I don't think an auditor would go for it because the guitars can be used for other than the church band.
Which is where I think your activities might be problematic. If the instruments can be used outside of the church, I would not deduct them. It's like my uniform at work. In order to be deductible, it cannot be usable outside of work. So, I can deduct the cost of the ever stylish uniform hat, but not the cost of underwear.
Home office deductions get extra scrutiny by the IRS. So if you want to deduct one room of your home as a charitable donation, I would be very cautious as it may trigger an audit.
Mileage on your car is deductible as part of charitable activities.
I'm no expert, but those are the kinds of issues I would raise with a qualified CPA about your situation. |
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Joined:
January 2004
Posts: 1225
Location: Lake Hiawatha, New Jersey | Originally posted by Tupperware:
We need new shirts. Replace the baret with a pope hat. This I gotta see ... In this case, you may want to make it a "pep" hat.... |
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Joined:
November 2004
Posts: 4413
| The three biggest lies:-
Of course I will still respect you in the morning.
The check's in the mail.
Hello, I'm from the government and I'm here to help you. |
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Joined:
December 2004
Posts: 4394
Location: East Tennessee | Originally posted by numbfingers:
Originally posted by Weaser P:
...a real live WA state tax guy is your right move.
My bill's in the mail. No state income tax in WA, they get their money other ways. So you can give us tax advice- just don't send a bill!
-Steve W. |
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Joined:
November 2004
Posts: 1374
| Originally posted by alpep:
as of april 15th I will be known as the "lost Art Vintage Music Ministry" I'm with you Al, since we just found out Last year that we are not employees of the companies we represent with our .orgs, and .coms, and are instead.. contract labor, well... let's just say that our current Tax bills are about TRIPLE what we had set aside.
we have 10,000 members in our community with our .orgs, and mailing lists for our zines of over 300,000 subscribers... we'll call ourselves the:
"Freebeez"..... now where's that online application to become an ordained minister? :p
Glenn |
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December 2001
Posts: 10583
Location: NJ | http://www.subgenius.com/ |
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Tax Tips - It's not too late is it?