Unregistered 07:14 AM 01-08-2015
I am considering offering to a family in crisis very reduced rate or free services.Mostly so the child has continued consistantsy in a very unsettled situation. How does this equate at tax time? Last years accounting we had done was not up to par so we can't ask them right now and we would like to know. Have any of you done this or do you know Michael?Will tom Copelands site have that info?
Unregistered 07:55 AM 01-08-2015
I have done this in the past. I was told we cannot take it as a "loss". What you do is claim that income that you receive just like any income, and claim anything you spent just like any other expenses. That's it.
TheGoodLife 08:00 AM 01-08-2015
Originally Posted by Unregistered:
I have done this in the past. I was told we cannot take it as a "loss". What you do is claim that income that you receive just like any income, and claim anything you spent just like any other expenses. That's it.
That's what I would say, as well. You are very nice to offer reduced rates but you cannot get any tax benefit for such. You have to claim only what is paid.
TomCopeland 01:28 PM 01-14-2015
Originally Posted by Unregistered:
I am considering offering to a family in crisis very reduced rate or free services.Mostly so the child has continued consistantsy in a very unsettled situation. How does this equate at tax time? Last years accounting we had done was not up to par so we can't ask them right now and we would like to know. Have any of you done this or do you know Michael?Will tom Copelands site have that info?
The other respondents are correct. Your discount to the parent is not a business expense.