Tax Time

[Tom Freeman]

Can anyone tell me if the NCRS membership fees are tax deductable?

Please don't tell me to ask my tax adivsor, if I could afford one of those I would not be posing the question

tom...

[Mike Yager]

Re: Tax Time

I do not consider myself to be a tax expert (I don't think anyone qualifies as an expert given the complexity of our tax laws - but that's another issue) but this is my opinion on the question.

Even without knowing the tax status of the NCRS, I would say they are not deductible since your dues are not an outright donation. You receive benefits from membership such as your Driveline and Restorer subscriptions.

Now if you made a donation to the NCRS, that may qualify as a deduction depending upon the tax status of the NCRS and possibly, the purpose of the donation.

Mike Yager, CPA

[Tom Freeman]

Re: Tax Time

Thanks Mike,
That was somewhat my thinking. I know that in some orgs a part of the dues is deductable. Say 50% goes for the Driveline/Restorer and the rest goes for the operation of the organization. So then the dues would be 50% deductable.

So NCRS, do all the dues money go for the Driveline/Restorer, or is that a pro rated amount that can be deducted?

tom...

[Christopher R.]

Re: Tax Time

No.

Distinguish non-profit and charitable or educational. You might get to deduct contributions made to charitable or educational institutions. But not necessarily non-profit ones.

It's a selling point to encourage you to contribute. If you can deduct it, the organization will be very prominent in telling you. You won't have to spend time trying to find out.

[Tom Freeman]

Re: Tax Time - Offical word

I e-mailed Jeff Cook, NCRS CFO, and he advises:

"Non of your NCRS dues are tax deductable. NCRS is a 501-c-7 non-profit not
a 501-c-3-"

tom...

[Chris R.]

Re: Tax Time - Offical word

I would think that if you were in the business of restoring Corvettes and selling them, the dues would be deductible as a business expense. You don't even have to be profitable, per se. The test as to whether or not you were in the business is that you must show an attempt to make a profit from your restorations. I agree that the dues could not be deductible as a charitable contribution.

[John H.]

Re: Tax Time - Offical word

"you must show an attempt to make a profit from your restorations."

Isn't that an oxymoron?

[Patrick H.]

Re: Tax Time - Offical word

Not if you're doing them with someone else's money.

It's just your OWN restorations on which you lose money. When you get to charge someone else for wasting their time and money, you call it a business.

PH

[Rob A.]

Re: Tax Time

If you consider restoring your cars as a "profession", they are deductable under "subscriptions to professional journals" per the IRS rules.

[Craig S.]

Re: Tax Time - Offical word

Sure sounds like it John! Unless the real intent is to use as a large deduction vs profit...ha ha ....Craig

[Paul B.]

Re: Tax Time - Offical word

Bummer, I "donate" several thousand dollars a year to my "favorite" charity!!! My Corvettes!!!!!!!!!!!!!!!!!!