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Author Topic: Offloading Analog Gear  (Read 5779 times)

g'bye, Dick Rees

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Re: Offloading Analog Gear
« Reply #20 on: December 27, 2012, 01:53:23 pm »

My accountant once told me never donate items and deduct it. It increases your chance of getting audited. Never wanted to find out if this was true or not lol

Mine says the same.  Hence my "red flag".
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Gus Housen

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Re: Offloading Analog Gear
« Reply #21 on: December 27, 2012, 08:16:57 pm »

I have a local youth outreach that will take anything
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Martin Primus

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Re: Offloading Analog Gear
« Reply #22 on: December 28, 2012, 12:23:14 am »

My accountant once told me never donate items and deduct it. It increases your chance of getting audited. Never wanted to find out if this was true or not lol

Mine says the same.  Hence my "red flag".

Hate to say this, but both of your accountants are full of sh*t. Red flags of this type are a figment of generally older accountants' imaginations.  The IRS will only "red flag" a deduction that represents a significant question mark in regards to things that are statistically normal.  The odd charitable donation (equipment or not) is not going to raise any eyebrows, unless you claim a Avid Venue or some other 20-30k mixer or something.  I've worked as a government auditor (state) and a public accountant, and one thing I guarantee you is that much like live sound, there are plenty of "professionals" in the accounting biz spreading misinformation.  If you keep good records and take legitimate deductions, you won't have any problems even if you do get a visit from an auditor.
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g'bye, Dick Rees

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Re: Offloading Analog Gear
« Reply #23 on: December 28, 2012, 08:02:04 am »

Hate to say this, but both of your accountants are full of sh*t. Red flags of this type are a figment of generally older accountants' imaginations.  The IRS will only "red flag" a deduction that represents a significant question mark in regards to things that are statistically normal.  The odd charitable donation (equipment or not) is not going to raise any eyebrows, unless you claim a Avid Venue or some other 20-30k mixer or something.  I've worked as a government auditor (state) and a public accountant, and one thing I guarantee you is that much like live sound, there are plenty of "professionals" in the accounting biz spreading misinformation.  If you keep good records and take legitimate deductions, you won't have any problems even if you do get a visit from an auditor.

And I reiterate that the value of a charitable deduction is blue book (or fair market value) minus the amortized deductions you've written off over the life of the piece.......which in most businesses comes out to zero if you've fully depreciated the piece. 

Red flags aside, you can't claim both depreciation and "charitable deductions".
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