- Joined
- Jan 30, 2002
- Messages
- 7,269
I've been fretting over the idea of HI being taxed for the contributions made. I am not an accountant, and I don't play one on TV, but I've had a couple of business enterprises...and maybe something like this would serve your purposes:
The situation as I understand it is that the monies came in through sales accounts, thus they need to be declared as income for IRS purposes. This was done due to the stress of the moment, but...for whatever reason, it is done. Let's call the amount $4000.
Couldn't HI set up a $4000 "Discretionary Medical Assistance Fund" administered by you, Yangdu, Pala. This account would be funded by earned income, before taxes--thus it would be an expense item...or at the very least, considered a "reserve," set aside from your net income.
The Discretionary account would be used...as it was...to serve as a financial medical assistance account for employees at BirGorkha, or HI...AT THE DISCRETION of two of the Fund managers. It would not be part of the employee reimbursement package, nor would it be a "given" that an employee would be eligible for account consideration, or receive it. The committee would have to vote to do so.
As Board members or company officers, depending on your set-up, you could elect to contribute to the fund each year, or eliminate it should it not prove a viable program in the future. At that time...then the monies would return to the income category, and be taxable.
Other Cantina members will know much more than I, but I think this is simple, legal, and provides for the intent of the contributions without HI paying taxes for what amounts to a record-keeping snafu.
My best wishes,
Kis
The situation as I understand it is that the monies came in through sales accounts, thus they need to be declared as income for IRS purposes. This was done due to the stress of the moment, but...for whatever reason, it is done. Let's call the amount $4000.
Couldn't HI set up a $4000 "Discretionary Medical Assistance Fund" administered by you, Yangdu, Pala. This account would be funded by earned income, before taxes--thus it would be an expense item...or at the very least, considered a "reserve," set aside from your net income.
The Discretionary account would be used...as it was...to serve as a financial medical assistance account for employees at BirGorkha, or HI...AT THE DISCRETION of two of the Fund managers. It would not be part of the employee reimbursement package, nor would it be a "given" that an employee would be eligible for account consideration, or receive it. The committee would have to vote to do so.
As Board members or company officers, depending on your set-up, you could elect to contribute to the fund each year, or eliminate it should it not prove a viable program in the future. At that time...then the monies would return to the income category, and be taxable.
Other Cantina members will know much more than I, but I think this is simple, legal, and provides for the intent of the contributions without HI paying taxes for what amounts to a record-keeping snafu.
My best wishes,
Kis
