Doing my part....Discounting

marvsbbq · BBQ All Star Joined: 15 May 2005 Posts: 6186

I will probably get flack from someone here for doing this as I would not discount for a wedding party.

I am ONLY doing this because my son is a member of this church.

I am serving pulled pork sandwiches for 25...(My min is 50)
I am traveling 250 miles round trip............(I normally charge $.65 a mile)
I am charging $5.00 PP.......................(I normally would charge $9.00 PP)

So here is what I did and how I showed it on my invoice...

25 Pulled pork sandwiches @ $9.00................$225.00
1 Estimated mileage (round trip) @ $.65.......$149.50
1 Service fee to meet min order...@$375.00....$375.00
1 One time discount.................@($665.00)....($665.00)

Subtotal.......................................$84.50
Gratuity.......................................$40.50
Taxes........................................$10.50
Total..........................................$135.50

As I have NEVER done this before, I am wondering if I should/could show this as a 'donation' instead of a 'discount' for tax purposes???
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Harry Nutczak · Posted: Apr 26 2007 Post subject:

I would give the accountant a call, and see what would be better.
A discount might hurt your numbers at the end of the year, whereas a full charity to a non-profit might be better?

Does you accountant do your numbers quarterly or annually?

I think you would be better of doing a full charity, and even adding the federal allowable fuel excise tax to be deducted on top.
But I am no accountant!

And I did not stay at a holiday inn express last night either!!
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roxy · Posted: Apr 26 2007 Post subject:

Yes you could Marv if it is for a church. You write them a bill for full price and they sign it back. You get to write it off, not sure on US tax law but you can here in Canada, I would think its the same down your way.
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marvsbbq · BBQ All Star Joined: 15 May 2005 Posts: 6186

BBQMAN · Posted: Apr 27 2007 Post subject:

I do this type of thing for my non-profit's all the time Marv, and good for you! Very Happy

You will need to show it as a donation, like you suspected. You will also need a copy of their 501c,d, whatever for your records. That is the only way you can take the deduction. In my case I do it for the write off (not that I really need to, but it's the only benefit you get) and as a thank you to the community. However, no 501, no discount! Wink

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smokin Jim · Posted: Apr 27 2007 Post subject:

Last summer I did a 100th Church anniversary. I had quoted $8.25 PP for the dinner. I billed them for the regular price of $12.25 PP and they issued a check for the full amount. I then issued them a check equal to $4.00 PP. That "donation" to the church was the difference of my having to pay income tax or getting a refund. I like refunds.
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3pigsbbq · Posted: May 08 2007 Post subject:

Ok question here guys. What's the difference if you charge 12.25 then "donate" back 4.00 and just flat out charge 'em $8.25 to beging with. Looks like you just don't have to pay tax on that $4 either way. But there's no paperwork if you just charge $8.25. Go ahead and beat me up...
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marvsbbq · BBQ All Star Joined: 15 May 2005 Posts: 6186

3pigsbbq · Posted: May 12 2007 Post subject:

yeah Marv, that's what I was trying to say in my post. Just show it on the invoice so they know what you gave 'em but the bottom line is you don't collect it so you don't pay tax on it and you don't have to keep up with some kind of record of the donation.
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smokin Jim · Posted: May 12 2007 Post subject:

The Secretary/Treasurer of the church requested that I do it that way. So you got to please the customer, right?
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BBQMAN · Posted: May 12 2007 Post subject:

3pigsbbq · Posted: May 12 2007 Post subject: