- Opera singer is a cash basis taxpayer
- Cash basis taxpayer can deduct whatever ordinary and or necessary income producing related expenses are paid with after tax dollars.
From your explanation, it does not sound like any after tax dollars were spent in the income production related activity (marketing related activity). Since no dollars were spent, there is no deduction.
I get clients all the time who want to deduct the value of their time spent chasing down deadbeat renters. It sounds reasonable at first until you put it into the terms I listed above. Cash Basis recognizes income when received, and expenses when actually incurred. The Opera Singer can deduct whatever expenses she incurred in putting on the performance. Perhaps mileage, the costume, dry cleaning…and that is probably about it.
Marc
From:
Sent: Thursday, September 11, 2008 10:50 AM
To:
Subject: [taxchat] Charitable Contribution
I have a client who is a professional opera singer. The theater she
performs at held a benefit. Her services were auctioned off so that she
was obligated to perform at a subsequent event hosted by the winning
bidder. Because she received a receipt (actually a "thank you") from
the theater, she gave it to me, hoping she could take a charitable
contribution on her 2007 income tax return. I told her there was no
deduction for her services. Now, I am second-guessing myself.
Any help would be appreciated.
--
Donna
Donna L. Loeffler, CPA
(507) 251-8119
dllcpa@hbci.
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