Question by Wes D: Small Business Taxes?
At present, my business has not revenued the minimum required to file taxes, $ 400. I am fixing to do a fundraiser with a local organization to get them some extra cash. I am almost 100% positive that after the fundriaser there will be more than $ 400 raised. I am curious if the money raised for the organization will count towards my tax stuff. OR will I just need to report what I kept for myself to cover the costs of the campaign.
Example: The organization raises $ 1000.00. I keep $ 100.00 to cover the costs of the fundraising campaign. The organization profits $ 900.00 Do I have to file for $ 1000.00 income or $ 100.00 income, since I only kept $ 100.
Hope I made it clear enough,
Answer by napper
be very careful. Is the organisation raising the cash and then paying you a fee or commision. Or are you raising the money and then giving that organisation the cash and they then pay you a fee. Or are you raising the money using that organisation and then paying them a fee or commision for that money raised.
Be carefull as i would say there would be a maximum amount you can give and claim as a donation or if the fee to them is a genuine expense it would then be expenses.
Suggest you use some one with the knowledge of your countries tax law to advise you. And yes you may have to pay for that advice. It would probably be a lot cheaper that way than risking heafty fines etc.
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