Comission,s

[lillian]

I was told by my friend that when we give out a certificate we are then working on comission, Are we allowed to do this and how does it work as far as tax and documentation? I received my reply so I wanted to thank everyone for there replys. I agree its a waste of time!

ANNIE

 

[past 7 Girl]

do you mean a gift certificate?

 

[Nikki N]

never heard of such a thing.....

....when you provide a gift certificate to someone, technically the money is to be "escrowed" until the gift certificate is used, then the money is place into the "till" as having been earned....

could that be what you mean?

 

[Kirsty]

My understanding is this: when you donate a GC, you can't deduct it from your taxes as a chairtable contribution, since time is not a tangible item.

That is why sometimes it is nice to do chair massage with the intention of donating the money to the chairitable organization. Misspelling intentional. Kinda punny, don't you think? You'd keep the cash, deposit it, write a check...that you could deduct.

Hope this helps!

 

[Pompal 09.]

That is why sometimes it is nice to do chair massage with the intention of donating the money to the chairitable organization. You'd keep the cash, deposit it, write a check...that you could deduct.

That's a wash - the bottom line is still zero. There's no tax benefit. Why do all the extra paperwork? Just give them the money.

 

[Rebecca A]

I think we've discussed this before. Doing it Mick's way increases your gross income figure. If you ever go apply for a loan to expand your business, (or a mortgage, car loan, home equity, etc) your gross income figure is one of the things they take into consideration.

If you never intend on having a loan that you will need your income to qualify, yes, it would be a waste of time.

 

[pam]

That's a wash - the bottom line is still zero. There's no tax benefit. Why do all the extra paperwork? Just give them the money.

I don't understand how there wouldn't be a tax benefit...you have income from the event, you have donation = deduction.

 

[blaquebb]

Please explain how there is a tax benefit. How is my bottom line tax obligation any different if I claim the income and then offset it by the exact same amount with the deduction compared to simply handing the money over to the charity at the close of the event?

 

[soum]

Please explain how there is a tax benefit. How is my bottom line tax obligation any different if I claim the income and then offset it by the exact same amount with the deduction compared to simply handing the money over to the charity at the close of the event?

Your tax burden changes by exactly $0. You just look better as a business on paper.