Armor, gear, gas/expenses may be tax deductible!

[Hemostat1976]

I was married last summer, and with her job and mine we faced a hot mess figuring out our tax planning/finances. We hired an accountant who claims that my new hobby may be entirely deductible from taxes (assuming I use the gear for non-profit/charitable works). Any tax gurus here that can confirm/deny this? It would be a sweet deal If I could deduct my armor/blaster/etc.

[kylebeagle[TK]]

_{I have ask the same question to my EA (Enrolled Agent | Tax Professional) in CA and will report back in with their reply.}

 

_{Great idea if the IRS does not have an issue with it.}

[Owen91]

Getting paid to troop? I like it!

[svache[TK]]

That's actually interesting stuff, looking forward to hear more about this

[Hemostat1976]

I heard from my local garrison that the issue was brought up some years ago- at that time, because the 501st isnt a "501" non-profit (lol- 501) deductions couldnt be claimed under the Bush admin.... My accountant swears that since so many organization and local charity groups arent certified 501 NPOs (it costs a lot of $ and 6 months to be reviewed).... We are allowed to deduct everything if we can provide documentation of a troop, i.e. boys/girls club, hospitals, etc. It also applies to gas/expenses toward getting to and from said events. Obviously, fun only troops wouldnt apply (celebration, unless you hug a disabled kid, etc). I would never suggest shorting my Uncle Sam, but if I can legally save a few bucks then good for me. He takes enough of my hard work as it is.

[TK-42779[501st]]

Sweeeeeeeeeeeet!

 

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[tkrestonva[TK]]

Actually, the Legion is now an official 501 (don't remember which specific designation) charitable organization. The change was done a month or two ago to introduce a more structured way of managing the Legion's expenses - for example, forum hosting fees. So if that was the main barrier - it isn't anymore.

 

REALLY looking forward to hearing the answer for this, the question should also be asked on the Legion forum. If true, then I imagine there are of course strings attached (accurate trooping records, at least XX% of events have to be in direct support of charities, etc.). Still, every little bit helps.

[TK-42779[501st]]

Where are the head honchos on this thread? Lol I'm sure they can help guide us.

 

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[TK-42779[501st]]

Actually now I am intrigued, I am going to talk to a customer of mine who is a CPA. I will share whatever information he gives me with everyone.

[Horrendous]

I like where this is going....

 

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[MxPxRobbie[TK]]

Not likely, folks... see this thread:

http://www.501st.com/forum/viewtopic.php?t=71868

[TK-42779[501st]]

Okay so after talking to a local CPA in great detail the issue starts with a simple yes or no question: Is the 501st registered with the IRS as a 501c3 organization?

 

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[TK-42779[501st]]

Not likely, folks... see this thread:

http://www.501st.com/forum/viewtopic.php?t=71868

 

Since I am not a member yet I can't read that. Lol

 

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[Brent]

Is the 501st registered with the IRS as a 501c3 organization?

 

No. We are a 501c7.

[TK-42779[501st]]

Yeah I am checking into that. I am told that there might just be a way. Stay tuned.

 

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[TK-42779[501st]]

Alright brothers and sisters, direct from one of the head honchos that I emailed:

 

" The discussion about tax deductions for charity and possible write off's seems to differ from State to State (and sometime CPA to CPA). There are members who write off a certain percentage of mileage to and from events, meal costs, costume costs, etc., as allowed by state or federal Law. This requires a very detailed receipts keeping process to ensure you are covered.

 

Please check with your local CPA to determine if there are any options available to you.

 

Rgds,

 

Scott Allen, Legion Charity Officer"

 

 

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[LadyInWhite[TK]]

My tax guy says "not really." I mean, US tax laws are so full of loopholes and b.s. that you can pretty much get away with anything. I even tried to have my armor listed as an expense for a "uniform required for work" under a corporation, but he didn't want to risk it.

 

One tax guy I had put up to $1000/year in charitable donations as a deduction, even though I had no receipts, and also mileage converted to $ (around $.29/mile at the time) for driving to and from charity work. (The 501st is not the charity you're volunteering for, it's the even itself, like MAW). Basically, his rationale was that if you are under the median household deduction level, it won't raise any red flags.

 

That said, that was HIS reasoning, and if you get audited you could be in big doo-doo if the proper procedures (i.e. receipts) aren't followed to the letter.

 

And by the way, something I learned the hard way a couple decades ago, deductions are not anything remotely related to cash flow. Never think of it as getting paid to troop.

[Evilboy[501st]]

My cousin is a corporate CPA. I have an email out to him, I'll let you know when I know...

[TK-42779[501st]]

I have called 3 CPAs and gotten three different answers. Lol Crazy how much grey area there is in our dealings with the IRS.

 

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[DarkTrooper[TK]]

I used to be a Revenue Agent. If I came across a situation like this I would not allow it. If you're attempting to write off the cost of a TK suit (or any other costume) you need to prove that the sole purpose of it is for charitable work. You need documentation for EVERYTHING. You need a calendar of every event you attended, record of mileage, receipts, etc.

[Hemostat1976]

Yeah. I followed up again with the CPA. As has been mentioned, I just need to keep all receipts and document everything to the letter. Im fortunate in that I just purchased all of my gear and have yet to build my suit. Im not in the least bit concerned. I wont play with fire and try to deduct fun functions- pub crawls, etc., but If I take a trip and spend 500 bucks on expenses/travel for a childrens hospital group, I WILL take my deduction.

[Brent]

You may also want to check with your CPA to see if there is any difference between a function hosted by a charity (Children's Hospital) and a function that benefits a charity (comic book store that makes a donation in your name). It seems like it would be pretty easy to fall in to a grey area so be careful.