----- Original Message -----From: John Stevens, Equi-TaxSent: 11/13/2008 12:41 PMSubject: RE: [taxchat] Joint venture
Arnie,
Who knows what they might do in this environment with IRS returning to its aggressive (some might say underhanded) tactics in a revenue-starved economy? They tend to emphasize form over substance. As Chuck says, if things keep going the way the IRS (or, should we say Congress?) wants, we'll all be wearing badges. At that point, I'm with Chuck – lemme outta here!! I don't want no stinkin' badges!!
John Stevens, EA
Stevens Tax & Accounting, Inc., dba Equi-Tax1870 - 50th St. E., Suite 8 Inver Grove Heights ,MN 55077
651-773-5000
FAX 651-457-4529
equitax@unique-software. com
www.equitax.net
From:
taxchat@yahoogroups [mailto:.com taxchat@yahoogroups ] On Behalf Of Arnold M. Socol.com
Sent: 11/13/2008 10:34 AM
To:taxchat@yahoogroups .com
Subject: Re: [taxchat] Joint venture
John,
Do you believe there would be a problem on an audit, if not reported and the details came out? Would any of our former IRS auditors report a deficiency of unreported income. Come on, at some point, we have to go beyond the text book and deal with reality and ethics. How can you before God justify having a client pay SE tax and maybe entitled to a Charitable deduction if they can itemize? Not me. What is the risk of choosing the right way over the law?
Arnie.
----- Original Message -----
From: John Stevens, Equi-Tax
Sent: 11/13/2008 11:24 AM
Subject: RE: [taxchat] Joint venture
Arnie,
I suppose if they had assigned all rights to the proceeds to the Church, there wouldn't be a reporting problem, and the charitable contribution would be built in (no income to report, and consequently no charitable deduction to report), whereas if they are receiving the sales proceeds themselves, then they are still in control of the money, which means they have to account for it first. Even if they didn't assign the rights to the income to the church, but merely directed that the sales proceeds go directly to the church, they still have control over it (constructive receipt), and it seems to me they would still have an obligation to report – just my view. John Stevens, EA
Stevens Tax & Accounting, Inc., dba Equi-Tax1870 - 50th St. E., Suite 8 , Inver Grove Heights MN 55077
651-773-5000
FAX 651-457-4529
equitax@unique-software. com
www.equitax.net
From:
[mailto: taxchat@yahoogroups .com ] On Behalf Of Arnold M. Socol taxchat@yahoogroups .com
Sent: 11/13/2008 10:10 AM
To:taxchat@yahoogroups .com
Subject: Re: [taxchat] Joint ventureHow about running all expenses and receipts thru the books of the Church since nothing is retained by the individuals anyway. I still would not bother to report any of this since the individuals are in effect volunteers and acting on behalf of the Church.
Arnie ----- Original Message -----
From: John Stevens, Equi-Tax
Sent: 11/13/2008 11:02 AM
Subject: RE: [taxchat] Joint venture
Robert,
It seems that since the income from the sales went to the 3 individuals, it would first need to be reported either on a partnership return (but they could elect out of partnership treatment by just reporting their respective shares on Schedule C), or if they consider it a not-for-profit activity, reported on line 21, with expenses on Schedule A subject to 2% of AGI limit, and then report the charitable contributions on Schedule A as well, as Donna suggests. I don't think it would be correct to not report the income – my opinion. John Stevens, EA
Stevens Tax & Accounting, Inc., dba Equi-Tax1870 - 50th St. E., Suite 8 , Inver Grove Heights MN 55077
651-773-5000
FAX 651-457-4529
equitax@unique-software. com
www.equitax.net
From:
[mailto: taxchat@yahoogroups .com ] On Behalf Of Robert Lukey taxchat@yahoogroups .com
Sent: 11/13/2008 9:38 AM
To:taxchat@yahoogroups .com
Subject: Re: [taxchat] Joint ventureI would think that this all should be charitable contributions and that no business should be reported. The receipts for sales should be paid directly to the Church and all the out of pocket expenses should be considered non cash contributions at cost. Then put mileage in for the trips to the studio and radio stations when promoting.
On Thu, Nov 13, 2008 at 7:54 AM, Donna J. Perrone <donnaperrone@
sbcglobal. > wrote:net 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.
--
Robert Lukey EA CPA
Unless expressly stated otherwise in this communication, this advice is not
intended to be used, and cannot be used, for the purpose of avoiding federal tax penalties.
This electronic communication (including any attachments) may contain proprietary, confidential or privileged information. This communication is intended only for the use of indicated e-mail addresses. If you are not an intended recipient of this communication, please be advised that any disclosure, dissemination, distribution, copying, or other use of this communication or any attached document is strictly prohibited. If you have received this communication in error, please notify the sender immediately by reply e-mail and promptly destroy all electronic and printed copies of this communication and any attached documentsArnie Socol
President
Ways & Means, Inc.
845-562-6070Arnie Socol
President
Ways & Means, Inc.
845-562-6070
President
Ways & Means, Inc.
845-562-6070
IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any 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 transaction or tax-related matters that may be addressed herein.
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