Tax Write-Offs For Free (As In Speech) Work? 198
deuist writes "Several years ago I wrote a book called The Not So Short Introduction to Getting Into Medical School (PDF) and released it online under a Creative Commons license. I have been asked several times to publish the text so that I can make money off of it. The book has become quite famous among pre-med students and is now available from the Princeton Review as a free CD that is given to pre-medical interest groups. My question to the Slashdot community involves claiming this work as volunteering for tax purposes. Have any of you had any success with releasing free software and then writing off your time when April 15 rolls around?"
What is your time worth? (Score:3, Insightful)
I'd looked into this for another charity (Boy/Girl Scouts) I help out with a lot and found that I can't deduct value for my time. In order to take a tax deduction I have to donate things like: cash with a receipt, goods (fair market value), or mileage documented in a diary or expense report.
In short, your time is worth nothing to the IRS unless you first convert it into cash, thereby establishing it's fair market value. Then you donate the cash.
If you'd like some kudo's, there is always the Presidential Service Awards [presidenti...awards.gov]. They have a section for Computers and Technology. When you hit your bronze/silver/gold levels you can get it vetted and send your $6 to get a certificate. You'll probably also get letters from your local politicians who are plugged into the recognition process.
Re:I write off thousands every year to OSS (Score:5, Insightful)
Re:Let me be the first to say (Score:3, Insightful)
Lol! A "tax write off" is not a rebate. It has nothing to do with the government paying people. It's something that lets you pay less tax than you normally would. Unless you really think you have a right to other people's income. In which case your lame Soviet Russia joke would actually be kinda funny, though not in the way you intended.
For example, you can get a tax write off for donating money to charity. A very simple, probably numerically incorrect, example: if you made $50k last year and donated $5k to charities, you can "write off" the $5k, and pay income tax as if you only made $45k. There's no "rebate" or government pay out involved.
Re:I write off thousands every year to OSS (Score:3, Insightful)
Re:I write off thousands every year to OSS (Score:1, Insightful)
Not in this case. I'd say in the short run "hacker"s CPA is saving "hacker" a bunch of taxes. I mean when the audit comes around it's going to cost "hacker" a ton but that's not what we're talking about today.
Re:I write off thousands every year to OSS (Score:2, Insightful)
Re:I write off thousands every year to OSS (Score:2, Insightful)
Here's how it works.. (Score:3, Insightful)
If you could write off the value of your time, all you'd have to do is work 40 hours/week, volunteer 40 hours/week and not pay any taxes ever.
Re:I write off thousands every year to OSS (Score:3, Insightful)