woodsac Posted April 19, 2004 Report Share Posted April 19, 2004 How do you go about claiming 'donations'? I am sponsoring a tournament in May. I am donating between 50-75 bags of plastic. Do I just count that as sales? I don't want to pay taxes on something I'm not showing a profit on (or physically selling). If I don't have to claim it, can I just count it as advertisement funds? Quote Link to comment Share on other sites More sharing options...
SeminoleFan Posted April 19, 2004 Report Share Posted April 19, 2004 Thats a good question. From what I understand you still must pay the 10% FET on all goods donated or given away. So if your giving away 50-75 bags of worms @ 1.99 * 10% = .199 cents. * 50/75 = 9.95/14.92 FET due. To claim it is up to you but I always do to advoid any problems. Hope this helps. Rick Quote Link to comment Share on other sites More sharing options...
Joe Posted April 19, 2004 Report Share Posted April 19, 2004 Hi Guys, I had my visit from the IRS lady week before last. When selling your baits, if the excise tax is included in the price, such as $1.99 + local tax= total sale. Take the $1.99 divided by 1.1 This gives you your base price. Multiply the base price X .1 to get the amount of excise tax due. $1.99 divided by 1.1 = 1.80 x .1 = .18 So the amount of excise tax due is 18 cents per unit. Hope this helps, Joe Quote Link to comment Share on other sites More sharing options...
