Approve the Cookies
This website uses cookies to improve your user experience. By using this site, you agree to our use of cookies and our Privacy Policy.
OK
Index  •   • New posts  •   • RTAT  •   • 'Best of'  •   • Gallery  •   • Gear  •   • Reviews
Guest
New posts  •   • RTAT  •   • 'Best of'  •   • Gallery  •   • Gear  •   • Reviews
Register to forums    Log in

 
FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography 
Thread started 08 Jan 2014 (Wednesday) 08:34
Search threadPrev/next
sponsored links
(this ad will go away when you log in as a registered member)

Tax (Headache) Time: Canada

 
Dan ­ Marchant
Do people actually believe in the Title Fairy?
Avatar
5,542 posts
Gallery: 19 photos
Likes: 1977
Joined Oct 2011
Location: Where I'm from is unimportant, it's where I'm going that counts.
     
Jan 08, 2014 19:58 |  #16

neacail wrote in post #16587864 (external link)
After several discussions with CRA (the Canada Revenue Agency), I'm starting to finally get a grip on what I need to do this tax season with regards to my "volunteer" photography work. "Volunteer" is in quotes, as it isn't really true volunteer work.

Have you spoken to your own accountant about this? It is my experience that if you phone the tax agency and ask them how to account for situation X they will tell you how to do that... they won't often take the time to carefully review what you are doing and tell you that you are actually in situation Y. If you tell them you have a barter situation they will tell you how to account for it even though you actually don't.

This involves "barter" practices.

The situation is as follows: Our hockey association collects a $200 volunteer cheque from the parents of each child. If the parent doesn't perform ten hours of volunteer service for the association, the cheque is cashed at the end of the season. If the parents do all of the volunteer time, the cheque is returned at the end of the season.

There are two ways to look at this. Either my total time is worth $200 to the team, or it is worth $20/hour to the team. I'm unsure which route to go.

I need to determine the value of the services I've received from the other volunteers: who each wrote the same $200 cheque I did. Either their services are worth $200, or they're worth $20/hour.

Disclaimer: I am British and what you describe may be an established thing under Canadian accounting/tax laws but my reading is that there is no "barter" and the value of services received by you from other parents is zero. You are providing a service to the league as are other parents - there is no reciprocal agreement between the parents to provide each other with products/services. The league benefits and they may have to account for that. However none of these parents are coming to your place of work and cleaning the floors or doing plumbing for you. You get zero direct benefit (from a tax point of view).


Dan Marchant
Website/blog: danmarchant.com (external link)
Instagram: @dan_marchant (external link)
Gear Canon 5DIII + Fuji X-T2 + lenses + a plastic widget I found in the camera box.

  
  LOG IN TO REPLY
Chiefy
Goldmember
Avatar
2,440 posts
Gallery: 5 photos
Likes: 138
Joined Feb 2012
Location: Ontario, Canada
     
Jan 08, 2014 20:16 |  #17

neacail wrote in post #16587864 (external link)
After several discussions with CRA (the Canada Revenue Agency), I'm starting to finally get a grip on what I need to do this tax season with regards to my "volunteer" photography work. "Volunteer" is in quotes, as it isn't really true volunteer work.

This involves "barter" practices.

The situation is as follows: Our hockey association collects a $200 volunteer cheque from the parents of each child. If the parent doesn't perform ten hours of volunteer service for the association, the cheque is cashed at the end of the season. If the parents do all of the volunteer time, the cheque is returned at the end of the season.

There are two ways to look at this. Either my total time is worth $200 to the team, or it is worth $20/hour to the team. I'm unsure which route to go.

I need to determine the value of the services I've received from the other volunteers: who each wrote the same $200 cheque I did. Either their services are worth $200, or they're worth $20/hour. There are 15 children on the team, and none are siblings.

If everyone's time, regardless of the number of hours, is worth $200 everything comes out even. 200(1)=(200x14)/14

If we look at it based on an hourly rate, things go haywire. The coaches put in more time then I do, the managers (I'm guessing) put in around the same amount of time I do, and there are a whole bunch of parents who didn't do anything in 2013 (I assume they will in 2014). I could have a profit or a loss. I would need to consult with the parents individually to come up with the numbers.

I'm the only one who has volunteered professional services, so I'm the only one that is actually affected by any of this from a taxation point of view.

How should I handle this? $200 total value on my services, or $20/hour?

Thanks!

No wonder my taxes are so high I can't afford to retire!


1DX Mark II/5D Mk IV - 16-35L f4 IS - 135L - 24-70L f2.8 IS II - 70-200L f2.8 IS II- 100-400 IIL IS - 100 Macro f2.8L IS - 85mm 1.4 IS L - Σ 35 1.4 Art - Σ 50 1.4 Art - Σ 18-250 - TC 1.4 II - EF 12/25 II - Profoto A1 - Manfrotto 055CXPRO3/Really Right Stuff BH55
Flickr (external link)

  
  LOG IN TO REPLY
neacail
THREAD ­ STARTER
Goldmember
Avatar
1,188 posts
Gallery: 43 photos
Likes: 440
Joined Dec 2013
Location: Calgary, AB, Canada
     
Jan 08, 2014 20:20 |  #18

Dan Marchant wrote in post #16589560 (external link)
Have you spoken to your own accountant about this? It is my experience that if you phone the tax agency and ask them how to account for situation X they will tell you how to do that... they won't often take the time to carefully review what you are doing and tell you that you are actually in situation Y. If you tell them you have a barter situation they will tell you how to account for it even though you actually don't.

It was CRA that advised me that I was in a barter situation during my first phone call with them with regards to what I could, and couldn't, write-off this year. It was confirmed once more by a CRA agent, and the one I spoke to tonight agreed.

I have spoken to our coporate accountant (who does our flooring company's books, but not my books) and he felt a barter situation did apply, but not in the same way the CRA did (which prompted my phone call to them tonight). He actually felt it was simpler than what CRA had advised me.

Incidentally, I also learned tonight that Adobe Creative Cloud is classified as a current/operating/othe​r expense. This is much better than claiming Photoshop under "class 12 depreciable property. It is 100% deductible as a leased product, and it is no longer subject to the half year convention. :)

Dan Marchant wrote in post #16589560 (external link)
Disclaimer: I am British and what you describe may be an established thing under Canadian accounting/tax laws but my reading is that there is no "barter" and the value of services received by you from other parents is zero. You are providing a service to the league as are other parents - there is no reciprocal agreement between the parents to provide each other with products/services. The league benefits and they may have to account for that. However none of these parents are coming to your place of work and cleaning the floors or doing plumbing for you. You get zero direct benefit (from a tax point of view).

You are correct that the agreement is not between parents. The agreement is with the association (or specifically, the team). What the other parents are doing is relevant to establishing the value of the services I'm receiving from the team (according to CRA . . . hubby's accountant sees it a bit differently).

I still have a month to get everything completely clarified and sorted out.


Shelley
Image Editing Okay

  
  LOG IN TO REPLY
neacail
THREAD ­ STARTER
Goldmember
Avatar
1,188 posts
Gallery: 43 photos
Likes: 440
Joined Dec 2013
Location: Calgary, AB, Canada
     
Jan 08, 2014 20:29 |  #19

Chiefy wrote in post #16589617 (external link)
No wonder my taxes are so high I can't afford to retire!

:lol: My taxes used to be very high . . . until I started going about actively working at reducing them. I used to overlook a lot of things, or feel that what I would get back just wasn't worth the effort involved.

Looking at the way things are shaping up in TurboTax so far, this will definitely be an audit year.


Shelley
Image Editing Okay

  
  LOG IN TO REPLY
sponsored links
(this ad will go away when you log in as a registered member)

1,646 views & 0 likes for this thread
Tax (Headache) Time: Canada
FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography 
AAA
x 1600
y 1600

Jump to forum...   •  Rules   •  Index   •  New posts   •  RTAT   •  'Best of'   •  Gallery   •  Gear   •  Reviews   •  Member list   •  Polls   •  Image rules   •  Search   •  Password reset

Not a member yet?
Register to forums
Registered members may log in to forums and access all the features: full search, image upload, follow forums, own gear list and ratings, likes, more forums, private messaging, thread follow, notifications, own gallery, all settings, view hosted photos, own reviews, see more and do more... and all is free. Don't be a stranger - register now and start posting!


COOKIES DISCLAIMER: This website uses cookies to improve your user experience. By using this site, you agree to our use of cookies and to our privacy policy.
Privacy policy and cookie usage info.


POWERED BY AMASS forum software 2.1forum software
version 2.1 /
code and design
by Pekka Saarinen ©
for photography-on-the.net

Latest registered member is larawink
773 guests, 222 members online
Simultaneous users record so far is 15144, that happened on Nov 22, 2018

Photography-on-the.net Digital Photography Forums is the website for photographers and all who love great photos, camera and post processing techniques, gear talk, discussion and sharing. Professionals, hobbyists, newbies and those who don't even own a camera -- all are welcome regardless of skill, favourite brand, gear, gender or age. Registering and usage is free.