..with a taxable remainder of $65.00... I meant to say David Love davidlovepianos@earthlink.net > [Original Message] > From: David Love <davidlovepianos@earthlink.net> > To: Pianotech <pianotech@ptg.org> > Date: 1/30/2004 5:59:05 PM > Subject: RE: Deductibility of referral fees, etc. > > It's not quite the same thing. However you book it, your income is based > on money actually received and you would be deducting $10.00 from $65.00 > worth of income paying taxes then on $55.00. In the referral fee scenario, > you receive $75.00 and you pay out $10.00 with a taxable remainder of > $75.00. Of course, you could always deposit the money in an offshore bank. > Or just pretend you did, like those great guys over at Enron. > > David Love > davidlovepianos@earthlink.net > > > > [Original Message] > > From: Arlin Hall <ahall12@austin.rr.com> > > To: <pianotech@ptg.org> > > Date: 1/30/2004 5:45:58 PM > > Subject: Deductibility of referral fees, etc. > > > > Someone asked: > > > > "are discounts to Piano Dealers deductible? conceivably they might be > > considered referal fees because they allow access to the piano service > > market. " > > > > They certainly have the net effect of referral fees. Say for example, if > > your normal price is $75. You pay a referral fee to someone of $10 for > the > > tuning. You book both the $75 revenue for the tuning, and the expense of > > the $10 referral fee, for a net of $65 income for that transaction. Say > you > > negotiate $65 fee with a piano dealer. You could either just book the $65 > > straight, or book the normal $75, then show a discount of $10, still > showing > > the same net of $65. The discount would be treated as a reduction of > > revenue on your Schedule C, just like an expense. I could make a strong > > argument that on your invoice to the piano dealer you would want to show > the > > whole price of $75, and the discount of $10, totalling down to the net of > > $65. That way every time he sees your invoice he has a reminder that you > > are cutting him a deal. (Hopefully in exchange for continued steady > > business and additional referrals). > > > > Arlin > > > > _______________________________________________ > > pianotech list info: https://www.moypiano.com/resources/#archives > > > > _______________________________________________ > pianotech list info: https://www.moypiano.com/resources/#archives
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