Taxes?

[Front Yard Fright]

I do not charge admission to my haunt (I'm zoned residential so I can't) so what I do is ask for a donation from everyone who enters. If people ask how much admission is, I say it's a $6.00 donation. It's not required, but we ask for $6.00 and do our best to get it out there that it IS in fact a DONATION, and is not required. A portion of my donations actually go towards a local humane society.

My question for you guys is, would I have to pay taxes on these donations? Logic says no, but you never know!

[thehauntedhollows]

I would say no, afterall its a donation. Don't even bother worrying about the gov taking your money right now, just focus on your haunt!

Even if your donations were supposed to be taxed as income, who would ever know?

[Front Yard Fright]

The reason I ask is because there's a haunt near me that REALLY wants me shut down. He's called the city and has done a lot of messing with me. It was mentioned that he may come after me with the IRS about not paying taxes.

I'm just trying to cover my bases so if anything is said or brought up.

[Allen H]

As long as you give the money to a charity and DO NOT CLAIM the donation your self..... I would call your state tax office.
By the way whenever someone gives you advice that ends in "who would ever know?"
Really think twice before you listen to it. Just sayin!
call your state tax office and be sure.
Allen H

[maliciousstudios]

Damn

Damn.... I HATE Mr. Tax Man.....LMFAO ((( REALLY ))) Im using the word HATE here about the Tax Man.....LMFAO

[Motograter]

Sorry to hear about your little problem with another haunter Zach. I just don't understand why some haunters love to cause problems to get another haunter shut down. I understand it's business and competition but it's just not right. We are all in this together all doing what we love to do most! I would do as stated above in this thread, to donate all the money to a local charity. I don't think you would get in trouble for doing something good like that.

[shawnc]

It's best to check, although that is going to cost you money as well. The IRS likely won't give you a definite answer and even if they do, you can't hold them to it.

In my opinion you will have to pay. Even though you might call it a donation (or whatever else you want to) it is income to you. That's all the IRS really cares about - income in whatever form. You would then be able to deduct all your expenses but that opens up all kinds of bookkeeping problems.

Welcome to the business world!

[maliciousstudios]

Hate

Im using the word "HATE" here to express my feelings about the tax man...lmfao but the descriptive word "LOATH" also comes to mind when I think of the tax man.......lmfao

[Barry]

While I am not an accountant, and far from a tax expert, I would have to agree with Shawnc. If you are only giving a portion of the proceeds to a charity then the remainder is income to you.

You may want to consider doing it as a sole proprietorship business, reporting income and expenses. That way you can use the expenses to offset the income. I would think you would be ok showing $0 income on the business but the IRS will only let you claim losses for a certain period of time.