is that ok if I do this..?

[DarinS]

There are many laws in the U.S. explaining these finances in detail

DO NOT guess or just accept the answer of a layman....you can also ask a professional..accountant, lawyer etc

sometimes they are available free of charge during tax season

if there is a specific law or loophole then we are free to take advantage of those laws or provisions

as long as we obey 'Caesar"

again always keeping Jehovah's law in mind foremost

[carlos]

I suppose it depends on several factors, each one's conscience among them. Also, different countries have different laws. But some things are common sense.

 

If I help a brother to paint his house and the sister cooks a cake for me in sign of appreciation, I won't declare that. It's a gift.

 

If I fix a brother's computer and he gives me 20 euro for the time I spent, I accept those with a good conscience. It's a gift.

 

But if it is well-known that Carlos fixes computers in his free time and accepts a "donation" of 50 euro per hour, that is income that should be declared, in my opinion. It's a commercial activity.

[shali]

So basically, if you offer to do something for someone - say, give their dog a bath, and you never said beforehand "but it will cost you so-and-so" but after you did this deed, the person gives you something, even though you weren't expecting it, that would probably be a gift?

[Brother Arellano]

I suppose it depends on several factors, each one's conscience among them. Also, different countries have different laws. But some things are common sense.

 

If I help a brother to paint his house and the sister cooks a cake for me in sign of appreciation, I won't declare that. It's a gift.

 

If I fix a brother's computer and he gives me 20 euro for the time I spent, I accept those with a good conscience. It's a gift.

 

But if it is well-known that Carlos fixes computers in his free time and accepts a "donation" of 50 euro per hour, that is income that should be declared, in my opinion. It's a commercial activity.

 

Exactly. Well said. In short any time you expect compensation in exchange for a service it counts as income. Here in the US even if your price is a cake you have to pay taxes on that. The question is how do you pay taxes on a cake? Send the tax man the frosting? Its okay I don't care for frosting anyway. 

[Tortuga]

So basically, if you offer to do something for someone - say, give their dog a bath, and you never said beforehand "but it will cost you so-and-so" but after you did this deed, the person gives you something, even though you weren't expecting it, that would probably be a gift?

 

I believe that if you do something and you are expecting compensation, no matter what form it is, then you have received reportable compensation. If you do something as a gift and do not expect to ever receive any compensation, in any form, but the person offers you a gift, then it's a gift. How can you give someone a gift of your labors if you expect a gift of compensation?

[Tortuga]

Here in the US even if your price is a cake you have to pay taxes on that. The question is how do you pay taxes on a cake? Send the tax man the frosting? Its okay I don't care for frosting anyway. 

 

 

Hmmmm.....cake.....

[Precision]

Hmmmm.....cake.....

 

Tres leches with flan, German chocolate or upside down pineapple...what would you like ?  

[Tortuga]

Tres leches with flan, German chocolate or upside down pineapple...what would you like ?  

Yes. 

 

Actually my wife makes great cakes and use to do wedding cakes for the friends. Many years ago she started charging for her cakes and declared it as hobby income. I'm a little (a lot) spoiled, I love her cakes and don't care for store bought cakes....

[Precision]

Yes. 

 

Actually my wife makes great cakes and use to do wedding cakes for the friends. Many years ago she started charging for her cakes and declared it as hobby income. I'm a little (a lot) spoiled, I love her cakes and don't care for store bought cakes....

 

Sounds like she truly spoils you rotten! Store cakes are really terrible.  A dear sister in another congregation specializes in Tres Leches, they really are quite scrumptious! And my sweetheart likes to make streusel cakes, and all types of fattening cookies ! 

[Tortuga]

Sounds like she truly spoils you rotten! Store cakes are really terrible.  A dear sister in another congregation specializes in Tres Leches, they really are quite scrumptious! And my sweetheart likes to make streusel cakes, and all types of fattening cookies ! 

 

I'm getting in the car!

[Stormswift]

Anything store bought can't compare to homemade I reckon.

[RaymondG]

Australian Tax Law also considers 'the cake' or any other form of non-monetary compensation for work done as taxable...

In the case of regularly helping out brothers (and others) by working on their car and regularly getting paid for it, I'm sure you'd have to declare that as taxable income.

However, you would also be able to defray it a little by claiming the wear and tear on your tools, materials used (hand cleaners, rags, lubricants, gasket sealants, household electricity) and your costs in picking up and delivering the vehicle.

If it's a business it's a business. Issue invoices, keep records of costs, possibly write simple contracts.

In some cases, not for working on cars, but for photographic work, the Australian Tax Office has deemed it all to be a hobby and therefore no tax is payable.

[carlos]

Anything store bought can't compare to homemade I reckon.

 

Except if it is homemade by me. Then you'd prefer the store-bought.

[Brother Arellano]

Australian Tax Law also considers 'the cake' or any other form of non-monetary compensation for work done as taxable...

In the case of regularly helping out brothers (and others) by working on their car and regularly getting paid for it, I'm sure you'd have to declare that as taxable income.

However, you would also be able to defray it a little by claiming the wear and tear on your tools, materials used (hand cleaners, rags, lubricants, gasket sealants, household electricity) and your costs in picking up and delivering the vehicle.

If it's a business it's a business. Issue invoices, keep records of costs, possibly write simple contracts.

In some cases, not for working on cars, but for photographic work, the Australian Tax Office has deemed it all to be a hobby and therefore no tax is payable.

 

Very smart thinking. I have never thought about deducting business expenses when it comes to jobs I do for my Brothers. 

 

Not that I charge much to my Brothers and Sisters. Something I have often been criticized for. Does anyone else have special rates for their Brothers?

[RaymondG]

Something else I'd like to add...

Many Witnesses world wide are ripped off abominably with automotive servicing. As are non-Witnesses.

People are subjected to deceit of all kinds, and also to another issue that clouds the issue. Someone working on your car has to do a reasonable job of ensuring that there's no liability on his behalf after he's worked on your car.

For instance, if a mechanic is doing a job on your car and notices something else might need attention in the near future. In many places they will go ahead and fix that as well without reference to you even though it really didn't need to be done for several months.

A personal mechanic would let you know that this is something to allow for over the coming months. In this way you get value out of the parts, things aren't replaced before they're needing replacement.

Some jobs are more important than others, some things can be worked around for a long time. An experienced mechanic can help the owner by explaining the urgency or lack of urgency, help the owner to eke out their car-running budget.

[feather]

Not that I charge much to my Brothers and Sisters. Something I have often been criticized for. Does anyone else have special rates for their Brothers?

 

  yes i offer different/ cheaper rates when working for the Friends ~

   and do not consider it a loss of income since i would rather have their fellowship & work in their home

    than spend that time in worldly association

 

   

[RaymondG]

Originally posted by Brother Arellano

Very smart thinking. I have never thought about deducting business expenses when it comes to jobs I do for my Brothers.....

It can go further than that...

For instance, if Michael drives to work each day for his regular job, I doubt that he's allowed to claim the cost of driving to work when he calculates his taxes.

But if he buys parts for jobs he's doing at home for the brothers from his employer, then his trip to work and back that day is tax deductible.

I was surprised, by the way, at Jerry's comment about the 14c per mile for 'charitable use' of your vehicle. There's nothing like that here.

We commonly contribute to fuel and running costs here, especially when doing rural service. I agree with saying that's a gift to assist with the running costs. If it wasn't, then the driver would be breaking the conditions of their registration and licence. You could make it more clear cut by actually putting fuel in the car to that value.

We generally take our own coffee and refreshments, so buying them in compensation for car use isn't necessarily going to work out.