A conversation recorded 02-28-17
Many of us Santa’s are self-employed, or Independent Contractors, and this can lead to some interesting tax questions.
Santa Steve Eastis, the Treasurer/CFO of the International Brotherhood of Real Bearded Santas and former Tax Preparer in the State of California gives us valuable tips we can use to get all of the write-offs we’re entitled to.
Everlance Link (Save $25) https://bnc.lt/E9ac/m3xXAVeyNw
IRS Resources:
https://www.irs.gov/pub/irs-pdf/p526.pdf
https://www.irs.gov/publications/p334/ch08.html
UNEDITED QUESTIONS & COMMENTS FROM THE SESSION:
For business miles I use the Mile IQ app My CPA says; “no to write off time as donation” Mile IQ Yes for
My CPA says; “no to write off time as donation” Mile IQ Yes for
Mile IQ Yes for cost! In two weeks I covered the cost Props like backdrop, magic supplies,… are ALL deductions
Props like backdrop, magic supplies,… are ALL deductions
I”m almost 100% with you Ed, Time donated is not a deduction from income. IRS looks at is as income that you did not make can’t be offset bv taking a deduction against your actual income. You simply did not get paid fr your efforts.
Lots of good stuff here, but some flies in the face of IRS interpretations.
Re the Donated time to charities… my professional life has been with non profits, and folks often have the misinterpretation that the value of their “time” can be deducted. Numerous rulings that time value is not deductible, as there was no income reported. If you were paid by the charity, and you then wrote the charity a check to offset the income you could take a “personal” charity deduction. Unless your total personal deductions (mortgage interest, property and real estate taxes, allowable medical expenses, donations, etc.) exceed the standard deduction .
Most people such as our Santa community do not accumulate enough personal deductions to justify itemization. Thus the best bet is simply to know that yu have done a good deed that generated no taxable income.
Those Santa related expenses are legitimate “Business” expenses.
Corporate structure benefits are mostly in minnimazing “liability” exposure, but can effect tax situation.
One can never have too much detail on documentation of expenses. Taking photos of invoices and photos the actual purchased items automatically “date stamps” and can save ones “ass-ets” if you should ever be audited.
I’ve heard that all mileage is not deductable as it is considered “going to primary business.” What is the rule? MileIQ is $59.99 per year or slightly more per month
MileIQ is $59.99 per year or slightly more per month
Does it make it easier if you are an LLC electing “S” corp for tax purposes?
Ix the credit card statement good enough?
You answered good enough! 🙂
I’m not so good keeping all the individual statements.
Good idea to have a separate credit card for Santa use only!
Over 600 Dollars, isnt it.. not 300
For Charity work, dont you have to take the check, claim it as income and give it back to the Charity in order to count it as a personal income deduction?
personal use of car vs rental of car. Which is better for the writeoff? is there an advantage of going to a CPA or somebody like that as compared to a tax preparer ie H&R Block thanks guys
is there an advantage of going to a CPA or somebody like that as compared to a tax preparer ie H&R Block thanks guys
2016 was my startup year as a pro Santa. My expenses were greater than my income. How does this affect my tax filing. Can I claim a loss? When do I have to show a profit so it is not counted as a hobby.
I am retired and my home is paid for therefore I don’t have much to deduct and use the 1040EZ. Where is the threshold as to dollars where it makes it worthwhile to deduct?
So if I volunteer as Santa somewhere, I can deduct my hourly rate.
When you take the hours you donate for taxes do you need to get a letter from the company you donated your time too?
Are dues paid to organizations deductible? How about travel and meals to and from meetings? Santa Ted, Oregon
How about the $ you get from gig salad What about expenses like the Branson event?
What part can you take off?
If you are still employed full time and do this on the side it’s good to have as many expenses as possible to deduct.
So would the “entire” registration for conference or school be a write off?
