Thread: WWBD/Showing 'doorprize' for tax purposes?

For Halloween at my regular gig, the owner is allowing a doorprize type drawing that night where customers will drop their name in a jar/bowl/whatever and then names will be drawn for prizes. Owner said the other dancer that works there asked to do this (to give away lessons, etc.) and said if I wanted to give away something then I could.

I'd like to participate & promote myself a bit, but for tax purposes I'm not sure how to effectively show/prove I've given away any items. I would ask the venue to give me something on their letterhead showing what I donated and the value of it, however this isn't anything the venue is sponsoring per se. To the best of my knowledge there won't be any shisha or hookah items being given away either (that would tie in with the venue). It seems to be very much a "if you want to give away stuff then you can" vs. "We/Venue will be giving away doorprizes, would you like to/can you contribute something?"

If I put it on my usual receipt to the venue as 'One private lesson donated for Halloween doorprize, value $XX' (for example) but of course don't charge them, would that suffice for tax purposes? Or do I just track it myself on the books & don't put anything on a receipt to them since the venue isn't really sponsoring this, just allowing us to give away if we want?

I wasn't planning on giving away a great amount of goods/services, but just a little something. Still, I need to be able to recoup it on taxes/write it off somehow, you know?

You can only write off a donation of tangible goods on your taxes. You cannot write off the value of any donated time or services.

I don't think this is a donation, since it's not a charity. I would record it on my books as an advertising expense. If the person who 'wins' the certificate redeems it, just initial it with the date redeemed and put the certificate in with your receipts.

If they don't redeem it -- which happens to me more often than not, even with silent auctions where the person pays for it!! -- then you haven't really given away anything of value to record.

(just the advice of another dancer, I'm not an accountant or anything)

Originally Posted by Lauren_

If they don't redeem it -- which happens to me more often than not, even with silent auctions where the person pays for it!!

This happens to me all the time too! I just don't get why you would pay $40 or $50 for something and never even try to use it. ..c::

Originally Posted by Lauren_

I don't think this is a donation, since it's not a charity. I would record it on my books as an advertising expense. If the person who 'wins' the certificate redeems it, just initial it with the date redeemed and put the certificate in with your receipts.

If they don't redeem it -- which happens to me more often than not, even with silent auctions where the person pays for it!! -- then you haven't really given away anything of value to record.

(just the advice of another dancer, I'm not an accountant or anything)

I don't know why it didn't occur to me that DUH ..c:: if the certificate isn't redeemed then I really haven't given anything away. This is my first time doing this though, so it's a learning experience ..g.:

I'd like to give a hip scarf and one, maybe two, certificates - an individual private lesson & a 'you & a friend' or 'you + 2 friends' semi-private lesson. Decision then being, if they're redeemed, do I do the lesson in their home, or do I rent studio space & then add the rental expense to the total cost associated w/the certificate? Not sure how I feel going into someone's home, though the hassle of renting space isn't so appealing either.

Business is not glamorous ..l;,