How does your club handle taxes?

Our group Buckeye Ukulele Society wants to do paying performances but have questions about how other clubs handles taxes.

Any tips?

Bill

Cash.....

http://www.irs.gov/irm/part7/irm_07-025-007.html

says if the money comes from members to support the club functions and costs, then it's not taxable.

But it then says that if the money comes from non-members, it falls under 512 (a)(3) in which case you have to pay tax on any proceeds that exceed the costs and deductions.

http://www.irs.gov/irm/part7/irm_07-027-007.html

Does your Club have status as a legal entity?

If it is a legal non-profit and you want to start presenting shows with an entry fee and paid performers, you should have liability insurance to protect the BOD. As far as paying performers, anything under $600 you don't need to do anything. Starting at $600 you need to get a W9 from the performer and issue them a 1099 at the end of the year.

Then there are house concerts. There is quite a bit of grey area there, and many people hold them with no legal status and just keep everything on a cash basis. It's unlikely that the State of Federal Govts. would go after you for the occasional house concert, but without liability insurance the homeowner would be on the hook should anyone get injured on the property.

Scooter

Rllink said:

Cash.....

Click to expand...

Beat me to it. Keep the taxman out of it.

In California:

http://bpd.cdn.sos.ca.gov/other/forms/una-128.pdf

...if the money's going back to the club. There is a maximum limit for the fund, but you can always throw "cultural events" for the members. On the checks it should include the word "Donation" and your nonprofit REG. NO.. As previously stated, liability insurance for officers. Ric

In Ohio:

http://www.creativeoptionc.com/templates/GN004.pdf

http://www.lsc.ohio.gov/analyses129/h0267-i-129.pdf

Along with local, State and Federal taxes, don't forget music royalties.