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Wow, I really need to start proofing/previewing these messages before I post them. Please excuse all of the mistakes in that last one and other posts I have been making. Guess you can chalk that up as one reason not to post at 2am ;(

For anyone that was that curious about busnuts or the arizona MVD laws, check out www.busnut.com and www.dot.state.az.us They work this time....I promise :)

Onto the tax laws. I have looked at a couple of the IRS publications so far....but they're about to put me to sleep so I had to stop before I read all of the ones that might have info. So far it looks like I have 2 options.

From Pub 535 I could call this a not for profit activity. The problems would be that I would still have a bunch of tax forms to fill out and it would generally make my tax prep more difficult. Also, it looks like it uses depreciation on a vehicle, so I would probably end up with gains the first year and loses (which can't be deducted from normal income) for the next few. But, it looks like this is one way to go. Go to this page if you want to read their details http://www.irs.ustreas.gov/prod/forms_pubs/pubs/p5350104.htm

The other option is in Pub 950 under gift tax. As it says, "You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return." So, I don't even have to worry about problems with giving the sponsors something in return....I just have to give them less in return than what they give me. Sounds fine to me :)

The gifts have to be under $10k for this to work....I can handle that. Best of all, there's no paperwork. For this I would have to do a little research if I did promise to give them "billboards" on the side of the bus....but I would just have to show that they gave me more than fair value for this.....basically that they were sponsoring the bus, not just advertising on it. Read more about the details at http://www.irs.ustreas.gov/prod/forms_pubs/pubs/p95002.htm

Well, that does it for me tonight. If you have any more insight on this please let me know, but as of now it looks like calling it a Gift will work. I'll just have to make sure I have proof that it is a gift (anything promised in return is worth less than the gift) to be safe incase the auditors come knocking one day.

Fool On!

Aaron

(It only took 3 previews to fix all the mistakes I nearly made in this post. Looks like I need an editor! :)
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