[off topic] Re: donation in germany: taxes

[Andrew Sackville-West]

All very interesting. In the US we often operate on an "if you don't get 
audited, its legal" sort-of mind-set. In other words, if I feel it to be 
a legitimate business expense, unless there is a specific rule to the 
contrary, then it is.

FWIW, if it came up with a tax specialist or auditor, I could argue that 
its was essential in my estimation to ensure the continuation of 
development and "support" of the product. Further, you could probably 
argue that it is true free-market economics in that the developers, on 
behalf of the "project" ask for only what I as the consumer think the 
product is worth. I pay that and its legit.

In fact, especially I think with the US IRS, you could argue -- "well, I 
usually buy quickbooks updates at $150.00 per year plus another $150 for 
payroll support. this year I switched products to a lower-cost 
alternative for only $100 (donation amount) so therefor I am paying more 
$ in taxes. happy?" they probably would be.

Final cut:
Auditor: What's the $100. paid to Sourceforge.net/gnucash?
Me: Oh, that's support costs for my mission essential accounting package.
Auditor: Oh., Okay, great. What about this $3,000 expense to the local 
Hooters Restaurant?
Me: Ummm... say, is this your large, fat envelope full of cash? ;-)

Don't get me wrong, in that I run an upstanding, tax paying business, 
but I was struck by your (Neil) statement about the lack of deductions 
for this. I have absolutely zero qualms about claiming my gnucash 
donation as a deductible expense. Especially since I have no affiliation 
with GNC and receive none of those funds back to my pocket. And really, 
what's the difference between paying a fair amount for open-source 
free(speech) software and paying for commercial software other than I 
get to name the price instead of you? And, since I could easily get 
copies of any commercial software and hack it to work without paying or 
registering, isn't my payment to M$ or Intuit essentially a donation as 
well ;-)

my tax deductible .02

IANAA. All opinions are my own, use at your own risk.

Andrew

Maf. King wrote:
> On Tuesday 05 Jul 2005 22:42, Neil Williams wrote:
> 
>>On Tuesday 05 July 2005 10:17 pm, Andrew Sackville-West wrote:
>>
>>>Neil Williams wrote:
> 
> 
>>money or writing off a debt.
> 
> 
> 
> Hi, 
> I thought that "bad debt" was allowable for tax purposes? (in the UK!)
> 
> Maf.
> 
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