How to create an asset with a reduced value compared to my regular currency (dollars)

[Mike or Penny Novack]

On 12/3/2017 10:16 AM, Ronal B Morse wrote:
> Adrian, is there a reason you treat the rebate as a negative expense 
> instead of miscellaneous (non-taxable) income? To me, the rebate is 
> something you get rather than something you don't give, but my 
> analysis could be incorrect, and if it is I'd like to know.
>
> RBM 
Yes, very good reason. So as not to overstate (both) income and 
expenses. You did NOT have as an expense the full amount and then income 
of the difference between the (actual) discounted expense and the full 
price.

It might help if I gave a concrete example why this is not arbitrary?

To do that we will need to increase the amounts and put this into a 
context where there is a specific regulation. I will use for the 
regulation US IRS rules for 501(c)3s << charitable non-profits >>

Regulation: If gross income > $100,00 file the 990, if not, but > 
$25,000 file the 990-EZ, if under that file just the electronic postcard 
990-N << just indicates "we still exist", no details >>

Situation: Organization with all other income of $24,500 hires work done 
for $3,000 but then the vendor says that will give a 20% discount to 
non-profits. If this is treated as $600 of extra income, must file the 
990-EZ instead of just the 990-N.



Michael D Novack