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| Author |
Message |
| 25 new of 138 responses total. |
remmers
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response 100 of 138:
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Apr 27 14:14 UTC 1998 |
(Suggestion to Mark, re #98: If you put the file in your www
directory and post the URL, Backtalk users can access it too.)
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other
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response 101 of 138:
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Apr 27 17:15 UTC 1998 |
wow, so if i donate another $360 or so, i can be an official "fat cat?" cool!
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aruba
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response 102 of 138:
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Apr 27 17:51 UTC 1998 |
Thanks Dave, I fixed that typo.
I'm toying with the idea of publicly thanking the top 50 or so contributors
publically, but I'm not sure it's appropriate.
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janc
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response 103 of 138:
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Apr 27 19:45 UTC 1998 |
Thanks Mark. I've updated the application with your corrected numbers.
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bru
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response 104 of 138:
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May 1 14:30 UTC 1998 |
I still say this is a foolish thing to do...
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rcurl
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response 105 of 138:
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May 1 15:17 UTC 1998 |
...and I'm putting my $50 in the mail today, to help Grex do it. Say,
bru, how much are you willing to donate to replace the financial benefits
that Grex will receive by becoming tax exempt?
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bru
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response 106 of 138:
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May 7 14:22 UTC 1998 |
I still say you won't reap any benefits. Your outlay won't change. You will
become noticed by the tax collection people who apparently aren't noticing
you now, and the amount of paperwork required each year will probably triple
laying an extra burden on your volunteers.
What BENEFIT do you gain from being tax exempt.
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rcurl
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response 107 of 138:
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May 7 15:41 UTC 1998 |
The willingness of more people to donate and join (donations and dues
are tax deductible); the ability to be able to apply for grants for
improvements (most granting agencies require organizations be charitable,
as shown by the tax exemption); the ability to be exempt from property
taxes (if Grex ever has any real estate); the ability to be a partner in
the world of charitable organizations; perhaps lower fees for exhibition
space in fairs. That's just a beginning...
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mary
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response 108 of 138:
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May 7 20:54 UTC 1998 |
What percentage of our dues would be deductible once
we subtract the fair market value of the benefit provided?
According to the IRS, that we are willing to allow
some to have the service without fee does not mean the
service has zero fair market value.
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other
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response 109 of 138:
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May 8 00:41 UTC 1998 |
the fair market value of our service would have to be very low compared to
competitive rates for much higher tech services offered on a for-profit basis.
what we offer is essentially invaluable.
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rcurl
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response 110 of 138:
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May 8 05:39 UTC 1998 |
The IRS is not concerned with that kind of value.
The IRS permits 501(c)3 membership organizations to offer moderately
liberal benefits to its members. Here is an extract from a web page
discussing membership benefits:
"Membership Benefits
"Also disregarded for purposes of the substantiation and disclosure rules
are certain membership benefits provided in return for an annual payment
of $75 or less. The membership benefits may include frequently exercisable
rights and privileges and admission to members-only events. When a donor
pays for two or more memberships at one time and the amount paid is $250
or more, an acknowledgment is required, but the membership benefit
exception applies to each separate membership.
"Frequently exercisable rights and privileges include "free or discounted
admission to the organization's facilities or events, free or discounted
parking, preferred access to goods or services, and discounts on the
purchase of goods or services."
"Frequently exercisable rights and privileges also includes discounts
offered by retailers to an organization's members. For example, discounts
offered by restaraunts and music stores to members of a public
broadcasting organization are disregarded for purposes of the
substantiation and disclosure rules. Frequently exercisable rights and
privileges, however, exclude the right to purchase tickets to collegiate
athetic events."
The site is
http://www.mayolawfirm.com/Philanthropy/Substantiation.html#Membership
Benefits if you want to read the rest of it.
Use of Grex is like use of premises or a parking lot - a frequently
exerciseable right. Since our dues are less than $75/a, it would appear
that *any* "frequently exerciseable" rights we afford members do not
need to be declared - except those tickets....
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bru
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response 111 of 138:
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May 8 14:39 UTC 1998 |
You WILL and SHOULD be pay property taxes. Are you still not paying property
taxes? Is the city still unaware of your existence? Are you paying your city
property taxes yet?
M-net is a non-profit and we have to pay property taxes.
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rcurl
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response 112 of 138:
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May 8 14:46 UTC 1998 |
(don't know what happened to the end of my sentence...did you step on it, bru?
.. 8^} )
....it would appear
that there need be no reduction in the deductibility of the dues since
all the membership privileges are "frequently exerciseable". Consider the
analogy of free parking for members at the premises of an organization:
that has a significant market value, especially if you were in downtown
New York, but that benefit does not affect the deductibility of the dues.
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albaugh
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response 113 of 138:
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May 8 15:41 UTC 1998 |
Why would a *renter* have to pay *property* taxes?
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rcurl
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response 114 of 138:
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May 8 18:35 UTC 1998 |
He's referring to the tax on corporate property. Homeowners don't pay
this.
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mary
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response 115 of 138:
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May 8 22:01 UTC 1998 |
Thanks for the up to date info, Rane.
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gibson
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response 116 of 138:
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May 9 04:49 UTC 1998 |
Renters do pay property taxes, their landlords.
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rcurl
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response 117 of 138:
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May 9 05:04 UTC 1998 |
("property" in #114 was to refer to stuff, not real estate - real estate
taxes are in addition)
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albaugh
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response 118 of 138:
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May 9 05:16 UTC 1998 |
I.e. taxes on non-liquid assets?
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rcurl
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response 119 of 138:
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May 9 05:22 UTC 1998 |
That is what is alleged. Mark, have you found out about this yet?
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aruba
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response 120 of 138:
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May 9 07:03 UTC 1998 |
No, I haven't, and I leave on Monday, so I won't for a while. If anyone else
would like to call the city and get the scoop, be my guest.
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davel
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response 121 of 138:
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May 9 13:02 UTC 1998 |
The property taxes in question are corporate *personal* property taxes, not
real=estate taxes.
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rcurl
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response 122 of 138:
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May 9 16:02 UTC 1998 |
(that's what i've been trying to say...confusing language - our house
is also our *personal* property...)
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rtgreen
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response 123 of 138:
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May 10 03:34 UTC 1998 |
I'm not a lawyer, but I can offer some anecdotes: I once managed an
apartment building in A2, and even though the place was furnished with
typical student junk, we had to inventory all of it, and pay personal
property (as opposed to 'real property', i.e. Real Estate) taxes on it.
My understanding is that all commercial businesses are subject to it.
Another anecdote: A friend runs a small testing lab in the city. He
has been assessed personal property taxes on all the lab equipment stacked
around his office/lab. Most of it is incomplete, non-functional stuff
from UM's Property Control, or salvaged from a dumpster, in the hope that
some business might come in, in which case it might be worth repairing.
To the city, that stuff still had considerable value! I had to advise him
to put all the non-working stuff at home in his garage, and declare his
'technical archaeology' to be his hobby. Buy his 'bargains' with
personal, not company money, and 'sell' them to the business only if and
when there is the need for that equipment to service a paying customer.
After hearing this story, I realized why commercial companies seem to be
so wasteful and quick to throw stuff away. If it's not an earning asset,
it's a liability when the tax man cometh...
Now, what does this all mean to grex? First, get rid of all unused
equipment (the old Sun, those monitors, what else?) as soon as we identify
that it doesn't fit our future plans. Second, plant a mole in the city
tax assessors office. Find out when the local technology companies are
going to be visited, and pay them a visit first, suggesting a 'donation'
of their non-performing assets to a worthy local educ/charit 501c3. We
just may find ourselves a little closer than 10 years out of date...
Yes, the 501c3 might get us noticed.. We probably owe some tax already, so
by rights we should be paying it. With the 501c3, we have the credentials
to solicit donations from entities with deeper pockets. Now, dealing with
the influence of those larger organizations on our decision-making process
may be another matter entirely...
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rcurl
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response 124 of 138:
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May 10 05:22 UTC 1998 |
The 501(c)3 may also exempt us. That's the point that has to be settled.
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