Re: Virtual Consultant Fee

["Al Barsa, Jr." <barsa2@xxxxxxx>]

At 09:08 PM 10/12/98 -0400, you wrote:
>I was going to quote this Pub until I saw this response.  I believe this
is CRAP!  Why is my donated
>time worth less than your donated computer? Having said that I can sure
see where allowing donations
>of time to be deducted would be a gigantic opportunity for cheating.  At
least you would think they
>could allow those of us who bill our time for a living to donate time at
the same rate.

Don't let it be said that I ever took a position agreeing with the IRS,
however now I have my accountant hat on.

If you purchase a computer, using money that you earned and paid taxes on,
and then donate it, it is deductible (at then fair-market value).

If you give time, it is not, because you never earned the cash to pay the
taxes.

If you purchased a computer with corporate pre-tax dollars and capitalized
it, then you could deduct the uncapitalized balance upon the donation.

If you purchased a computer with corporate pre-tax dollars and expensed it,
then you could not make any deduction.

Al




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| Private mail should go to barsa@ibm.net.         |
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Al Barsa, Jr. - Account for Midrange-L
Barsa Consulting, LLC.  
400 > 390

Phone:  914-251-9400
Fax:    914-251-9406


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