Deductibility

[Marcel Carey]

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)
>
>
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