[Hidden-tech] Re: pro bono work

[Edbride-PR]

Here is a response from my accountant, a CPA:
        "In one respect she is actually correct, but in order to get the
deduction for the fair value of "Services" you must then pick that up as
income and deduct the contribution. This makes NO sense as contributions
are deductible on Schedule A and not as a deduction for social security
taxes.  The transaction actually COSTS you money. What is being missed
here is that you are a cash basis taxpayer just as I am.  If there is no
cash transaction there is no deduction."

To reiterate: while many solopreneurs and entrepreneurs make more than the 
Social Security cutoff, if you don't, then you will pay taxes (which come 
back under the donation) and Social Security (double payment for 
self-employed, and these do not come back after the donation-back).

Ed


--------------------------------------

From: "Tish Grier" <tishgrier at yahoo.com>
To: "Bronwen Hodgkinson - cdeVision" <bronwen at cdevision.com>; "Lynne Rudié" 
<lynnerudie at verizon.net>
Cc: "'Hidden Tech Discussion List'" <hidden-discuss at lists.hidden-tech.net>
Sent: Thursday, December 04, 2008 10:27 AM
Subject: Re: [Hidden-tech] Re: pro bono work


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O.K.--maybe I"m wrong on this issue...

but Lynne's idea is rather interesting and sounds like it's a possible way 
to work it so that services can be a write-off.

Tish