Re: Virtual Consultant Fee

["James W. Kilgore" <omudi1b@xxxxxxxxxxxxxxx>]

> At 14:03 10/12/1998 , Guy Murphy wrote:
> >
> >        I just finished upgrading an AS/400 for our local PBS station as my
> >     donation to them, as a gift in kind.
> >        They need a letter from me detailing my hours and my charge per
> >     hour so that I can get a receipt from them for tax purposes.  Having
> >     never done work as a consultant, what's the going rate?
>

The basic guideline would be that you would claim the unreceived revenue as
income, unless you are a business that is classified as a cash basis accounting
method.

If you are on a cash basis, you had no revenue, you have no receivables,
you have
no debts not paid for, you have no payables.

If you are licensed on an accrual basis, you report (and pay taxes) on revenue
(paid for or not) and you can at least write the invoice off as a bad debt.

The above assumes that you have a business license in the first place.

If not, the personal charitable contribution limits would apply.  This may
include mileage and time.  I'm not sure if volunteer work for nonprofits is
claimable at fair market value (which may trigger an audit of your return) or
minimum wage.  There may also be a % of adjusted gross minimum that must be
exceeded and only the excess is deductible.

This may be worth the $$ to go talk to a tax accountant.

James W. Kilgore
email@james-w-kilgore.com


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