Heatrock legal and tax question

DrWu

I have a technical question. I have several people who would be willing to donate some larger type cheddar ($500 ish). Is there a way for them to claim the donation for tax purposes? It seems that it might be difficult under the system that we are setting up. I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these. Get back at me with some info please.

DocBeezy

I thought about that, I would like something to turn in for tax credit, but the way I look at it is: Whats more important, us pooling this money to get a good match or my puny tax write off?

DrWu

No doubt, this is not about me this about my investors coming in on the deal. Savy. I will be throwing rockage no matter what.

Grafwritah

You need something from the place actually getting the money (American Red Cross?) "Donations" to Soulstrut.com are not deductible as it's not a 501(c)(3) non-profit.



Or so I hear it works.

DocBeezy

You need something from the place actually getting the money (American Red Cross?) "Donations" to Soulstrut.com are not deductible as it's not a 501(c)(3) non-profit.



Or so I hear it works.

right

faux_rillz

I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these.

I'm afraid that those two things are not going to be compatible--remember, in order to take advantage of deepstank's employer's matching funds, we're donating everything through him... none of us are officially donating anything as individuals.

If you wanted to make a donation directly or through your own employer, then I'm certain you could take advantage of the tax benefits, but you'd probably have to forgo the match... I don't know of anyone else whose employer is offering 3:1.

DocBeezy

I believe the person sending in the money could get a blanket letter using the full total. THat is how it works for me when I donate to Hospice every year.

Funky_McVay

a couple of points:

1. you can count this donation as a tax write-off if the record is considered a gift or incentive. Non-profits holding fundraising drives do this often. You donate $50, you get a free gift card to...

2. are you claiming that much in tax credits that you would need to itemize this donation? In other words, if you deduct more than the standard of $4250, then you would require documentation of donation in order to itemize the deduction. If you donate less than $4250 this year in money/items combined, you are better off taking the standard deduction anyway so it doesn't even matter. If you need proof of a donation just to cover your ass, take some junk albums to Salvation Army and get a receipt. That's just as good as an annual total donation of $4250. dig?

Grafwritah

a couple of points:

1. you can count this donation as a tax write-off if the record is considered a gift or incentive. Non-profits holding fundraising drives do this often. You donate $50, you get a free gift card to...

Yeah, but Soulstrut isn't a non-profit, and write-offs are limited to donations to non-profits... if I remember correctly.

2. are you claiming that much in tax credits that you would need to itemize this donation? In other words, if you deduct more than the standard of $4250, then you would require documentation of donation in order to itemize the deduction. If you donate less than $4250 this year in money/items combined, you are better off taking the standard deduction anyway so it doesn't even matter. If you need proof of a donation just to cover your ass, take some junk albums to Salvation Army and get a receipt. That's just as good as an annual total donation of $4250. dig?

Real.

DrWu

a couple of points:

1. you can count this donation as a tax write-off if the record is considered a gift or incentive. Non-profits holding fundraising drives do this often. You donate $50, you get a free gift card to...

2. are you claiming that much in tax credits that you would need to itemize this donation? In other words, if you deduct more than the standard of $4250, then you would require documentation of donation in order to itemize the deduction. If you donate less than $4250 this year in money/items combined, you are better off taking the standard deduction anyway so it doesn't even matter. If you need proof of a donation just to cover your ass, take some junk albums to Salvation Army and get a receipt. That's just as good as an annual total donation of $4250. dig?

I just spoke with my accountant and he said that unless we have very clear documentation that specifically establishes your personal contribution to a charitable organization, then you are not allowed to claim it. Most people with houses like myself deduct in excess of the standard deduction so this is an issue for them. That said I personally don't care if I get a write off on this stuff. It would be nice to offer it to non-strutters. That is all.

Jonny_Paycheck

I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these.

I'm afraid that those two things are not going to be compatible--remember, in order to take advantage of deepstank's employer's matching funds, we're donating everything through him... none of us are officially donating anything as individuals.

If you wanted to make a donation directly or through your own employer, then I'm certain you could take advantage of the tax benefits, but you'd probably have to forgo the match... I don't know of anyone else whose employer is offering 3:1.

I don't think that's quite right - you are making a group donation, via soulstrut/vanguard squad, record has been kept of who donated what. What each individual (or business, in my case) requires is the information from Red Cross & Fred's Company, and a paper trail. I would like Fred to shed some light on this though - is Fred getting a $10,000 write off? Seriously though everyone's stepped up here, and everyone that has deserves the tax break that is rightly theirs.

We are not donating to soulstrut or the vanguard squad. The matching compensation doesn't preclude the contributor from taking advantage of a tax deduction., as I understand it.

I am claiming the check I wrote, the records I've auctioned, and the records I've bought on auction as well. It is helpful if you are in the business of selling records for the last two, though...

faux_rillz

I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these.

I'm afraid that those two things are not going to be compatible--remember, in order to take advantage of deepstank's employer's matching funds, we're donating everything through him... none of us are officially donating anything as individuals.

If you wanted to make a donation directly or through your own employer, then I'm certain you could take advantage of the tax benefits, but you'd probably have to forgo the match... I don't know of anyone else whose employer is offering 3:1.

I don't think that's quite right - you are making a group donation, via soulstrut/vanguard squad, record has been kept of who donated what. What each individual (or business, in my case) requires is the information from Red Cross & Fred's Company, and a paper trail. I would like Fred to shed some light on this though - is Fred getting a $10,000 write off? Seriously though everyone's stepped up here, and everyone that has deserves the tax break that is rightly theirs.

We are not donating to soulstrut or the vanguard squad. The matching compensation doesn't preclude the contributor from taking advantage of a tax deduction., as I understand it.

I am claiming the check I wrote, the records I've auctioned, and the records I've bought on auction as well. It is helpful if you are in the business of selling records for the last two, though...

Putting together the paper trail is no problem--what I'm saying is that I don't think that the donation that we are making is officially a group one.

I assume that Fred's employer is willing to match donations made by its employees, not donations solicited from its employees' friends and more peripheral accquaintances. Maybe I'm wrong, though.

So, while the matching contribution doesn't preclude Fred from taking advantage of a tax deduction, I do think that choosing to contribute in this manner will preclude the rest of us from doing so. If Fred sees financial benefit from this in April, maybe he could share it back with Eric and Tsega, the two other people that have really made this happen.

Jonny_Paycheck

I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these.

I'm afraid that those two things are not going to be compatible--remember, in order to take advantage of deepstank's employer's matching funds, we're donating everything through him... none of us are officially donating anything as individuals.

If you wanted to make a donation directly or through your own employer, then I'm certain you could take advantage of the tax benefits, but you'd probably have to forgo the match... I don't know of anyone else whose employer is offering 3:1.

I don't think that's quite right - you are making a group donation, via soulstrut/vanguard squad, record has been kept of who donated what. What each individual (or business, in my case) requires is the information from Red Cross & Fred's Company, and a paper trail. I would like Fred to shed some light on this though - is Fred getting a $10,000 write off? Seriously though everyone's stepped up here, and everyone that has deserves the tax break that is rightly theirs.

We are not donating to soulstrut or the vanguard squad. The matching compensation doesn't preclude the contributor from taking advantage of a tax deduction., as I understand it.

I am claiming the check I wrote, the records I've auctioned, and the records I've bought on auction as well. It is helpful if you are in the business of selling records for the last two, though...

Putting together the paper trail is no problem--what I'm saying is that I don't think that the donation that we are making is officially a group one.

I assume that Fred's employer is willing to match donations made by its employees, not donations solicited from its employees' friends and more peripheral accquaintances. Maybe I'm wrong, though.

So, while the matching contribution doesn't preclude Fred from taking advantage of a tax deduction, I do think that choosing to contribute in this manner will preclude the rest of us from doing so. If Fred sees financial benefit from this in April, maybe he could share it back with Eric and Tsega, the two other people that have really made this happen.

Whether or not Fred's employer chooses to recognize the long list of people involved here is neither here nor there, right? If you, D****l G***n can prove that you donated money, through this, that went to a non-profit org then I believe you can claim.

faux_rillz

I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these.

I'm afraid that those two things are not going to be compatible--remember, in order to take advantage of deepstank's employer's matching funds, we're donating everything through him... none of us are officially donating anything as individuals.

If you wanted to make a donation directly or through your own employer, then I'm certain you could take advantage of the tax benefits, but you'd probably have to forgo the match... I don't know of anyone else whose employer is offering 3:1.

I don't think that's quite right - you are making a group donation, via soulstrut/vanguard squad, record has been kept of who donated what. What each individual (or business, in my case) requires is the information from Red Cross & Fred's Company, and a paper trail. I would like Fred to shed some light on this though - is Fred getting a $10,000 write off? Seriously though everyone's stepped up here, and everyone that has deserves the tax break that is rightly theirs.

We are not donating to soulstrut or the vanguard squad. The matching compensation doesn't preclude the contributor from taking advantage of a tax deduction., as I understand it.

I am claiming the check I wrote, the records I've auctioned, and the records I've bought on auction as well. It is helpful if you are in the business of selling records for the last two, though...

Putting together the paper trail is no problem--what I'm saying is that I don't think that the donation that we are making is officially a group one.

I assume that Fred's employer is willing to match donations made by its employees, not donations solicited from its employees' friends and more peripheral accquaintances. Maybe I'm wrong, though.

So, while the matching contribution doesn't preclude Fred from taking advantage of a tax deduction, I do think that choosing to contribute in this manner will preclude the rest of us from doing so. If Fred sees financial benefit from this in April, maybe he could share it back with Eric and Tsega, the two other people that have really made this happen.

Whether or not Fred's employer chooses to recognize the long list of people involved here is neither here nor there, right? If you, D****l G***n can prove that you donated money, through this, that went to a non-profit org then I believe you can claim.

I don't think it is neither here nor there, though--I think a peripheral effect of proving that you donated money to an organization might also be proving that you took part in what deepstank's employer could view as a scam. I don't think this can be resolved until deepstank gets some more information.

Aser

perhaps the matching offer from deepstank's employer also precludes deepstank himself from filing the donation as a deduction. That could partly be the incentive for the employer to offer a 3:1 matching program, thus giving themselves more deduction room.

Jonny_Paycheck

I think that with the matching aspect and a tax write off our drive would appeal to even non-strutters like these.

I'm afraid that those two things are not going to be compatible--remember, in order to take advantage of deepstank's employer's matching funds, we're donating everything through him... none of us are officially donating anything as individuals.

If you wanted to make a donation directly or through your own employer, then I'm certain you could take advantage of the tax benefits, but you'd probably have to forgo the match... I don't know of anyone else whose employer is offering 3:1.

I don't think that's quite right - you are making a group donation, via soulstrut/vanguard squad, record has been kept of who donated what. What each individual (or business, in my case) requires is the information from Red Cross & Fred's Company, and a paper trail. I would like Fred to shed some light on this though - is Fred getting a $10,000 write off? Seriously though everyone's stepped up here, and everyone that has deserves the tax break that is rightly theirs.

We are not donating to soulstrut or the vanguard squad. The matching compensation doesn't preclude the contributor from taking advantage of a tax deduction., as I understand it.

I am claiming the check I wrote, the records I've auctioned, and the records I've bought on auction as well. It is helpful if you are in the business of selling records for the last two, though...

Putting together the paper trail is no problem--what I'm saying is that I don't think that the donation that we are making is officially a group one.

I assume that Fred's employer is willing to match donations made by its employees, not donations solicited from its employees' friends and more peripheral accquaintances. Maybe I'm wrong, though.

So, while the matching contribution doesn't preclude Fred from taking advantage of a tax deduction, I do think that choosing to contribute in this manner will preclude the rest of us from doing so. If Fred sees financial benefit from this in April, maybe he could share it back with Eric and Tsega, the two other people that have really made this happen.

Whether or not Fred's employer chooses to recognize the long list of people involved here is neither here nor there, right? If you, D****l G***n can prove that you donated money, through this, that went to a non-profit org then I believe you can claim.

I don't think it is neither here nor there, though--I think a peripheral effect of proving that you donated money to an organization might also be proving that you took part in what deepstank's employer could view as a scam. I don't think this can be resolved until deepstank gets some more information.

Ha, well since neither of us know the tax code well enough we'll have to wait; however, knowing Fred, I'm sure his employer is aware of what's going on and has endorsed/sanctioned it... I certainly doubt they would look at it as a scam. Several of us have given over $1,000 just in funds and several more have given over $1,000 in auctioned records. That's not chump change for most folks.

Swayze

Hi Campers -

I think if everyone keeps complete records of their donations, they should be able to claim. Submit it with the gift letter we will post upon receiving it from whatever organization we choose, and you should be solid. I've put in a call to my accountant to make sure of this. I will report back.

I don't think my organization can legally ask me where the money I donate to another organization comes from (aka: that's none of their business). I'll meet with my director this week to make absolutely sure that everything is kosher with SS submitting the donation through me.

Re: my deductions - I want everyone to know that the only reason I offered to submit the donation is so we can get the (PHAT) matching gift. I only plan to claim the amount of my cash donation, my record donations, and any donations paid for auction gifts won (if y'all would quit outbidding me, I'd win something!). With my income, dropping a $20,000 deduction on my tax form is like writing PLAESE TO AUDIT ME! on page one of my 1040.

hope this helps.

best,
dsf

flatblackplastic

That's not chump change for most folks.

Grafwritah

With my income, dropping a $20,000 deduction on my tax form is like writing PLAESE TO AUDIT ME! on page one of my 1040.

And since you collected the money before passing it on, wouldn't you have to claim that as income and be taxed on it first... ???

DrWu

That's chump change for Reynaldo[/b]