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Tax Write-Offs For Free (As In Speech) Work?
deuist writes "Several years ago I wrote a book called The Not So Short Introduction to Getting Into Medical School (PDF) and released it online under a Creative Commons license. I have been asked several times to publish the text so that I can make money off of it. The book has become quite famous among pre-med students and is now available from the Princeton Review as a free CD that is given to pre-medical interest groups. My question to the Slashdot community involves claiming this work as volunteering for tax purposes. Have any of you had any success with releasing free software and then writing off your time when April 15 rolls around?"
I'd looked into this for another charity (Boy/Girl Scouts) I help out with a lot and found that I can't deduct value for my time. In order to take a tax deduction I have to donate things like: cash with a receipt, goods (fair market value), or mileage documented in a diary or expense report.
In short, your time is worth nothing to the IRS unless you first convert it into cash, thereby establishing it's fair market value. Then you donate the cash.
If you'd like some kudo's, there is always the Presidential Service Awards. They have a section for Computers and Technology. When you hit your bronze/silver/gold levels you can get it vetted and send your $6 to get a certificate. You'll probably also get letters from your local politicians who are plugged into the recognition process.
I'm not against tax write-offs, and avoiding taxes any way possible, but I'm not aware of any component of the tax code that authorizes individual write-offs for voluntary, non-profit activities. Also, the fact that you are using a CPA for tax prep, and suggesting that others do so as well, scares me. CPAs are not for tax preparation. You have a question about the tax code, you ask a tax lawyer, not a CPA. CPAs are accountants.
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Lol! A "tax write off" is not a rebate. It has nothing to do with the government paying people. It's something that lets you pay less tax than you normally would. Unless you really think you have a right to other people's income. In which case your lame Soviet Russia joke would actually be kinda funny, though not in the way you intended.
For example, you can get a tax write off for donating money to charity. A very simple, probably numerically incorrect, example: if you made $50k last year and donated $5k to charities, you can "write off" the $5k, and pay income tax as if you only made $45k. There's no "rebate" or government pay out involved.
Maybe not
Have you ever seen what it takes to be an Accountant/Certified Public Beancounter? They practically are tax lawyers.
The game.
Not in this case. I'd say in the short run "hacker"s CPA is saving "hacker" a bunch of taxes. I mean when the audit comes around it's going to cost "hacker" a ton but that's not what we're talking about today.
Nice. Donating "property" to an organization that believes that there is no such thing as "intellectual property". Seems like a little hypocrisy, but maybe that's just me.
I'll give you one more way you can save money. Stop using the CPA and do your taxes yourself. It's easy. Just follow the forms and instructions.
If you could write off the value of your time, all you'd have to do is work 40 hours/week, volunteer 40 hours/week and not pay any taxes ever.
However if you assign your copyrights to the FSF like they suggest i would definitely see that as a donation, hopefully the IRS would as well