A business asks it’s customers to buy items from their store, and pay for them mind you, and place them into a donation basket for a good charity. Then the store manager turns in the "donation", gets a receipt from the charity, and uses it for a tax deduction. How right is this? Is it wrong? Give me your opinion. 10 points to the one who makes me believe their point of view!
Emilie: You didn’t answer the question, it happens all the time in the area where I live. I’m just wondering if people think this is a right thing to do or if it’s really cheating since the store received $ for the "donated" items.
Devil: That’s not an answer either, are there any intelligent people on here? Someone?

I run a small home based business. Can I write off supplies paid for in cash if I have the receipt, or do I need a cancelled check /bank statement AND the receipt for a deduction?

I have stayed in US from August 2000 to January 2007. Since Feb 2007, I am now woking full time

(more than 40 hrs/week) for a US based company on contract basis. I receive fixed monthly fee

in US dollars through wire transfer (conversion rate applied on the day of receipt). For

finalcial year 2006-07, I filed my taxes as a Professional.

I have done B.Tech in COmputer Engineering, and Masters of Computer Science.

Now for Financial year 2007-08, my receipts are more than 10 lacs. I am not able to understand

under which category should I file my taxes; i.e. Business or profession.

Here are some facts:

I am a sole proprietor, and I have hired few employees under a Business Name. Their income is

less than the Taxable limit, so I have not deducted the TDS yet. But I have also get some work

done on contract basis which amounts to more than 1.25 lacs. I consulted a CA and I was told

that if the contract work is more than Rs.20,000, then I am liable for TDS deduction from the

next financial year (I am exempt for the first year). But he also told that if I file under

Professional category, then only I shoudl worry ablout TDS from next year. But if I file under

Business, I should not worry as the limit for Business for AUDIT and TDS libalityis 40 lacs,

and my receipts are less than 40 lacs.

As far as the nature of my US contract is concerned, following are the facts:

1) I develop and support a product of a US company.
2) I do not own the intellectual property rights of the work I do for the company.
3) I am paid a fixed monthly fee for my product development and support services
4) The contract ie between the US comapany and ME.
5) I work under supervision of the US comapny.
6) The work is done on Servers sitting in US and india.
7) The work is 100% exported.

HEre is my delimma. I am sure that if I register my company, then I’ll fall under the BUsiness

category (40 lacs AUDIT and TDS libality). But since I am a sole proprietor, should this be a

profession or a Business. All the CA’s I have consulted advised me to file under Profession.
1)But I fail to understand just because I have an engineering degree and I am a sole

proprietor, why would I come under professional category?
2)Also, if I sign the future contact in the name of my Propertier company, would it help to

file under Business category.

Please advise?

I am self employed, While trying to find receipts and things for utility bills and other receipts, I found deductions that I forgot to report. I also reported "MORE" income then I actually made.(Yes, I actually said I made more money than I really did) I am a horrible book keeper and should never do my own tax returns, I did use Turbo Tax.

Anyway, going over things, I discovered that pretty much the whole return was done wrong. I tried not to deduct to much because I didn’t want to throw up red flags, So I actually stopped looking for more deductions. I was actually trying to avoid showing a loss on my 1040 schedule C , Not good when you are trying to buy stuff on credit when you are self employed. But anyway, I still get this face to face examination letter questioning deductions I did take. I can’t find the receipts for some of this stuff. I do have receipts for allot of the deductions I am entitled too, but didn’t report. I am seriously stressed out and I really want to correct this 2008 return before the examination if possible. Can I do it? Anybody know? Should I just take the receipts for deduction I didn’t take? I don’t really care about a refund, I just don’t want the IRS to throw me in jail and take my business and my house!!

Help!

`Bob from Baltimore
I can’t find receipts for some of the items in question. I did pay by check and some things I paid online. Will the transactions that shows up in my bank statements serve as a receipt for the items I am being asked for?

Ok I have had this lady do my taxes for me for the past 2 years. She has always done them at no charge since I qualified under her Free or Reduced program. The way we’ve always done this process is since she lives in another state now, she mails me an envelope with some helpful tax info. for me such as deductions etc. and also included is a tax organizer for me to fill in so that she can do my taxes easier. Well I received that envelope from her in my mail early February 2008. I filled it out and mailed it back to her with my tax form, documents and other receipts. After several days of not getting any response from her as to receipt of the items I mailed to her, I then emailed her to both her personal email and her business email. She never replied to either so I called both her business and home phone. Her business number turned out to be bogus and her home phone a machine always picked up. I left her a message and waited. She never called back so now it’s April 14, 2008…..
one day, as you all know before the tax deadline. I called the IRS and informed them of the situation and the lady I spoke with advised me to try and contact her a few more times today and if I received no response then to get them done somewhere else this year. Thankfully I had made a copy of my tax form (my 1099) I always make copies of my 1099 or W-2s just in case they get lost. Well since it was so close to tax deadline, I went to Tax ACT since some of my co-workers say they use that tax software to file their own taxes quickly and easily. I was able to file both my Federal and State taxes thru Tax ACT. I emailed the lady I had wanted to do my taxes one last time to inform her that I didn’t know why she wasn’t replying to my phone calls or emails but that since it was 1 day away from the tax deadline I went ahead and had my taxes done elsewhere. I also asked her to send back my tax documents to me (there’s a more but I’m fixing to run out of room so I’ll continue below)
sorry ran outta room. I wanted to mention that after I sent the email informing her that i had gotten my taxes done elsewhere already and that all I needed from her now was for her to mail back all the tax documents I sent her. Well not even 5 minutes after I sent that email my phone rang and it was her. She told me that the reason that I had never gotten the taxes she prepared for me was because she had accidentally placed the wrong zipcode on the envelope she put them in which she mailed off to me. She said she had just gotten them back from being lost in the mail because of the incorrect zipcode. Ok well I told her that I went ahead and already had my taxes prepared by someone else this year and that they were already taken care of. I asked her to please just send back all my tax documents to me. I even offered to pay postage so she could mail them back to me ASAP. She told me not to worry about postage and that she would get them in the mail right away. Still haven’t got them.

Hello!

Not sure if this question is against the community guidelines, the guidelines were rather ambiguous towards it.

In any case, my friend and I are taking part in "shave for a cure" this year. What happens is, we raise money for the Leaukaemia Foundation which will provide funds for cancer research and support groups for cancer patients.

We’re just asking if anyone on Y!A would like to sponsor us. It’s a secure online donation, and it’s but a reputable Australian organisation. The donation comes with a receipt for tax deductions (apparently some businesses can claim donations).

This is the link to sponsor our team: http://my.imisfriendraising.com.au/TeamPage.aspx?teamID=41064&langPref=en-CA

Thanks for any donations as it’s for a good cause. The money does NOT go to us. Go to the leukaemia foundation homepage for World’s Greatest Shave for more information.

Beau =)
Cancers such as Leukaemia (bone marrow creates too many leuokocytes, bone marrow makes red blood cells), Lymphoma (lymph nodes, related to blood filtration, very complex for you unintelligent people who believe "blood cancer" doesn’t exist) and Myeloma (bone marrow cancer, bone marrow make blood cells)…

An allstar cheerleading gym in my city wants to donate tumbling coaching and use of their facility (which is a unique facility) to the university’s cheerleading squad for one hour per week. For one year (48 weeks) of this service, provided to twenty cheerleaders, the approximate value would be about ,000.00. The company has agreed to provide this service free-of-charge, and the university is treating it as a "gift-in-kind". The university has said they will provide the company with a receipt, which (according to the university), the company can use as a tax deduction, since the university is a public university.

Is this true? Partially true? Completely false? Are there any deductions possible through this method?

From late last year, I made only about 6 thousand bucks. I am trying to claim business related expenses, but don’t have all the receipt. However, my credit card statements show transactions that I’m missing the receipts for. Would it be advisable to use what’s on the credit card statements to claim the deduction OR is it a one way to get my a$$ fried and have tax evasion charge on my record?

Also, is there anyway to claim cash transaction for business related expenses, but you do’t have the receipts.

I bought a computer in 2007 that I use exclusively for my job. When I did my taxes for that year I took the standard deduction — i didn’t have enough deductions to itemize.

When I file my taxes this year I am going to itemize… can I still claim the cost of the computer as a business expense this year? I still have the receipt.

Ok, say I made a web site for a friend. They gave me $$$ to do it. I get more friends asking me to make sites & pay me $$$ too! I make some business cards & brochures too & get paid. Tax time is coming now – how do I pay taxes on this income? I’ve made a business site – for making sites & designing. How do I claim this business income? What deductions can I take off? How do I record/prove my income from this business? What forms do I need to file? What do I need to take to a CPA? My journal? Bank acct. records? How do I show what I did? what if I was paid cash? This is just an example…but I want to be prepared.
About the cash…what if I don’t have a receipt? Just a deposit in my bank acct. & I only have a personal acct. Not a business one yet…that going to be a problem?