Chiefs Is there an accountant/lawyer on the forum? - SOC - Page 2

**pr_capone** · 11-22-2012, 11:27 PM

So... this thing has gotten WAY bigger than anticipated. A grand or two and I would have no problem reporting it and paying taxes. Donation +. I cannot bear 7k in taxes on money I never had.

I need an accountant or a lawyer. SOC needs to become a 501c3. I will be using SOC funds to pay whatever fees are necessary so cost is definitely a consideration.

Sorter · 11-23-2012, 12:51 AM

Quote:

Originally Posted by pr_capone

w00t! sorted.

I want royalties.

**Smed1065** · 11-23-2012, 12:54 AM

Mine was a gift, it says so on my receipt.

**BigRedChief** · 11-23-2012, 05:13 AM

501c3's are a nightmare to set up. But, there are options to accomplish your goal and much easier.

KC Tattoo · 11-23-2012, 07:13 AM

Dress up as indians and dump tea bags in the Boston harbor, that'll show em.

Dave Lane · 11-23-2012, 09:18 AM

Actually I think this would fall under hobby status and was not run for profit. Additionally you could treat it as a for profit company that made no money. Income - Expenses = 0. But really the IRS could care less about something like this that is obviously not for profit 501c3 status or not.

Shox · 11-23-2012, 09:52 AM

Quote:

Originally Posted by Dave Lane

Actually I think this would fall under hobby status and was not run for profit. Additionally you could treat it as a for profit company that made no money. Income - Expenses = 0. But really the IRS could care less about something like this that is obviously not for profit 501c3 status or not.

I'm a CPA and even if an endeavor is done for hobby purposes and the income is taxable, expense are an itemized deduction......this is the worst possible situation.

I think it could make an argument it is a gift and not taxable.

On the other hand the IRS could argue the money is taxable income or the service of communicating the views of chiefs fans to Clark and Chiefs management. But, the costs incurred would be deductible. Assuming you spend all or the majority of the funds on legit business expenses (i.e. banners ect) you would have no taxable income and accordingly no income tax liability.

I think I would just report the income and deduct the expenses.

aturnis · 11-23-2012, 10:40 AM

Luv I believe is a legal assistant. Get in touch with her...

LOCOChief · 11-23-2012, 10:51 AM

Quote:

Originally Posted by pr_capone

So... this thing has gotten WAY bigger than anticipated. A grand or two and I would have no problem reporting it and paying taxes. Donation +. I cannot bear 7k in taxes on money I never had.

I need an accountant or a lawyer. SOC needs to become a 501c3. I will be using SOC funds to pay whatever fees are necessary so cost is definitely a consideration.

501c3 is not going to be the way to go.
Aside from the fact that you'll have upwards of $700 in filing fees alone. 501c3 status is retro to the date of incorporation- it's a process. If you do it, get a cpa before they get crazy busy.

I think you'd have a hard time getting the IRS to approve the status for SOC and it won't happen until the end of the tax year but you have to be a corp before the end of this year. You will need bylaws, and financial projections and be able to justify the use of revenues raised.

Talk to a CPA and find another way. I'm sure that anyone that's donated weren't going to claim the donation on their returns but if they do........

LOCOChief · 11-23-2012, 10:54 AM

Quote:

Originally Posted by Shox

I'm a CPA and even if an endeavor is done for hobby purposes and the income is taxable, expense are an itemized deduction......this is the worst possible situation.

I think it could make an argument it is a gift and not taxable.

On the other hand the IRS could argue the money is taxable income or the service of communicating the views of chiefs fans to Clark and Chiefs management. But, the costs incurred would be deductible. Assuming you spend all or the majority of the funds on legit business expenses (i.e. banners ect) you would have no taxable income and accordingly no income tax liability.

I think I would just report the income and deduct the expenses.

there's the answer. And I thought this was the "worst possible situation" as well.

Chief Roundup · 11-23-2012, 10:57 AM

isn't frazod a lawyer???

WilliamInnerCircle · 11-23-2012, 11:17 AM

Quote:

Originally Posted by Chief Roundup

isn't frazod a lawyer???

Where do I start?

Intelligent. [checkmark]

He has the ability to argue a point. [checkmark]

Hates Kansas [checkmark]

Hates University of Kansas [checkmark]

Hates (most) University of Kansas fans [checkmark]

Was acquitted of attempted murder of a home appliance [checkmark]

Got this acquittal but, like OJ, we ALL KNOW HE DID IT. [checkmark]

No, he's not an attorney.

Fat Elvis · 11-23-2012, 11:37 AM

Quote:

Originally Posted by Chief Roundup

isn't frazod a lawyer???

no

Stinger · 11-23-2012, 11:43 AM

Quote:

Originally Posted by Chief Roundup

isn't frazod a lawyer???

Would love to see that exchange between Frazod and a judge.....

Chieftain58 · 11-23-2012, 11:47 AM

I was thinking about that the other day, chunt or ***** will be sicking the irs on you .

JimNasium · 11-23-2012, 11:51 AM

I'm of the opinion that this thread should be pulled immediately and this topic discussed offline.

11-22-2012, 11:27 PM
pr_capone bout time to go racing Join Date: Jan 2006 Location: Aguadilla Casino cash: $169941842	Is there an accountant/lawyer on the forum? - SOC So... this thing has gotten WAY bigger than anticipated. A grand or two and I would have no problem reporting it and paying taxes. Donation +. I cannot bear 7k in taxes on money I never had. I need an accountant or a lawyer. SOC needs to become a 501c3. I will be using SOC funds to pay whatever fees are necessary so cost is definitely a consideration.
Posts: 17,417

11-23-2012, 12:54 AM	#17
Smed1065 Supporter Join Date: Nov 2003 Location: QB Land Casino cash: $1999626	Mine was a gift, it says so on my receipt.
Posts: 8,808

11-23-2012, 05:13 AM	#18
BigRedChief Brainwashed Join Date: Dec 2003 Location: Swims with fishes Casino cash: $2265102	501c3's are a nightmare to set up. But, there are options to accomplish your goal and much easier. __________________ "Any fool can criticize, condemn and complain - and most fools do." Benjamin Franklin
Posts: 37,929

11-23-2012, 07:13 AM	#19
KC Tattoo SPOT THE PSYCHO Join Date: Jun 2007 Location: ks Casino cash: $55336771	Dress up as indians and dump tea bags in the Boston harbor, that'll show em. __________________ Hungry to hit There’s no contact during the offseason program, and Pro Bowl linebacker Derrick Johnson is just itching to hit somebody. “The offensive guys prance around, make plays, and catch balls,” Johnson said, “and you look at them and say, ‘I could’ve tore you up right there … ’’’
Posts: 15,845

11-23-2012, 09:18 AM	#20
Dave Lane Space Cadet Join Date: Aug 2000 Location: Kansas City, Mo, USA Casino cash: $2197649	Actually I think this would fall under hobby status and was not run for profit. Additionally you could treat it as a for profit company that made no money. Income - Expenses = 0. But really the IRS could care less about something like this that is obviously not for profit 501c3 status or not. __________________ Matt Cassel - 58.9 completion %, 13,495 yards, 82 TD, 57 INT, 24 Fumbles, 80.4 Passer Rating Alex Smith - 59.3 completion %, 14,280 yards, 81 TD, 63 INT, 36 Fumbles, 79.1 Passer Rating Do you realize the backups we have to this second coming of Matt Cassel have NEVER EVER thrown a regular season pass.
Posts: 19,346

11-23-2012, 10:40 AM	#22
aturnis PALKO POWER! Join Date: Apr 2001 Location: Iowa Casino cash: $72460	Luv I believe is a legal assistant. Get in touch with her... __________________ Adopt a Chief, Ricky Stanzi. STANZI is the MANZI
Posts: 8,206

11-23-2012, 10:57 AM	#25
Chief Roundup Admitted Planet Junky Join Date: Oct 2000 Location: Mtn. Home AR Casino cash: $5987068	isn't frazod a lawyer??? __________________ "Careful not to step in the bullshit." Every had a Hole In One? I have. Engineers are always correct! Go Chiefs
Posts: 4,165

11-23-2012, 11:47 AM	#29
Chieftain58 Fan club member Join Date: Jun 2002 Location: Land of OZ Casino cash: $18910	I was thinking about that the other day, chunt or ***** will be sicking the irs on you . __________________
Posts: 1,437

11-23-2012, 11:51 AM	#30
JimNasium Voodoo Chile Join Date: Jan 2001 Location: At the crossroad Casino cash: $1123877	I'm of the opinion that this thread should be pulled immediately and this topic discussed offline. __________________ I've been drinking muddy water and sleeping in a hollow log.
Posts: 5,635

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode