Beware! I don't know about your IRS laws down below, but here in Québec one has to charge and collect the taxes on the FULL amount BEFORE the discount. Because of this, I will never show a discount on an invoice. I will thell the dealer of the discount, but never in writing. Marcel Carey, RPT Sherbrooke, QC > -----Original Message----- > From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org]On > Behalf Of Arlin Hall > Sent: 31 janvier, 2004 10:48 > To: pianotech@ptg.org > Subject: Deductibility > > > Phil, No you don't need to write a check to the dealer on for the > discount. You just show on your invoice what your regular price > is, your dealer discount, and the net of $65, which is what he > writes you the check for. On HIS books, the dealer is only going > to show the $65 he gave you. On your books, gross - discount = net > so you have a better picture of what is going on with your business. > Your paper trail for the IRS (and your accountant) is two > fold. First > is the invoice and check you received for this transaction. > Second is > all of the other charges you have for the year, which > should substantiate > that your regular charge is indeed $75. That way the IRS > will not doubt > your numbers. > > On the floor tuning thing, I would still write the invoices > for your own > records, and also give a copy to the dealer so he knows the value of > services received. So using the "gross - discount = net" > formula, you > would show: > > Tuning +75 > Discount -75 > ---- > Amount Due $ 0 > ==== > > The dealer may chuck it in the garbage can. His choice. > But then you have > a record of how much of your "time" you are giving you > away. Evaluate that > against what business you are getting from him to decide if > its worth it or > not. I hope that's clear for you. If you have any > questions, anyone, on > this, feel free to call me at 512-801-1583. > > Arlin > > > > Phil Bondi Wrote: > > Arlin, > > some good advice there..I have a question: > > Let's say that on an invoice for dealership work, you show $75 for a > regular tuning, and a "Dealer Discount" of $10 for a net of $65. > > Do you HAVE to write a check to that dealership in oder to > show on your > tax return this rate reduction? > > I'm thinking that in order for a tax break to occur, you > would need to > have a paper trail showing where the money was going. If that's the > case, then you would need to charge the dealership your > full price and > then write them a check for the agreed upon discount. > > Also, how would this work for floor tunings, since most dealerships > distain from having to spend money on pianos on the floor. > > Thanks for the input. > > -Phil Bondi(FL) > > > _______________________________________________ > pianotech list info: https://www.moypiano.com/resources/#archives >
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