Re: Church gig ownage
agedhorse wrote:
Bobby1Note wrote:Why not bill them in accordance with your usual rate, then in turn, donate that fee to the church. That way you have income against which you can knock off expenses,,,,, and,,,, you have a tax-credit for a charitable donation.
It doesn't work that way (at least here in the states)...
If you bill them and receive the money, that is a taxable event. You donate the money back to them and that reverses the taxable event. You are back at square one and a net zero. You just used up the tax deduction that you hoped to generate.
I think you need to talk to a good accountant. 
StratGuy and myself are both in Canada btw.
Here's how I see it, the church pays StratGuy $200. ,,, he gets to deduct the expenses agains that income. That of course, lowers his "net" income from the event to say,,, $150.. He doesn't return their cheque,,,, he gives them a new $200. cheque from his account, as a charitable donation. It could be dated the next day for example, to untie it from the gig..
The donation, will then be a tax-credit, which lowers his yearly taxable income by that same amount. If his taxable income rate is 35% for example, then that's $70. he gets to keep in his pocket,,, plus,,, he has his expense deduction for the gig. Now, he still has that $150. he netted from the gig, and that too is taxable at his rate of 35%.
When the dust clears, he's ahead $17.50 for the gig, plus he's paid for his expenses for doing the gig..
It's not much, but,,,as it stands now, he gets,,,,,,, $ Zero, and he's paying his expenses out of pocket.
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