Re: [taxchat] Joint venture

Weren't there any expenses involved with this project?  I'd think you'd want to do a Schedule C and reflect the income and expense for the project.

 

Terri L. Ryman, EA
SOUTHWEST TAX & ACCOUNTING
503 Morton, Box 1367
Elkhart, KS  67950-1367

 

620.697.2422 Phone

 

620.697.4757 Fax

 

tryman@elkhart.com

 

 

----- Original Message -----

From: Donna J. Perrone

To: 'TaxTalk Listserv Members' ; taxchat@yahoogroups.com

Sent: Thursday, November 13, 2008 8:54 AM

Subject: [taxchat] Joint venture

The music director/organist of our church is my client.  She joined forces with our 2 cantors, a husband and wife, to produce a CD with religious selections and other comforting music. They are donating all the profits to our parish.

 

This is basically a one time event. I am thinking about how this will be reported on my client's return this year. My first thought is that the income would be on line 21, the expenses on Sch A, subject to 2%, and the profits donated reported on Sch A as a charitable contribution.  Since the organist and her husband have a high AGI, they can very well lose the deduction for the expenses.

 

Any thoughts on this?

 

Donna Perrone

 

Donna J. Perrone, EA

East Haven, CT

203-469-4939

203-468-2038 fax

 

 

IRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax advice contained herein, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.

 

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