Anybody? How to avoid this taxation?

[Longwell]

QUESTION: Have any of you volunteered at a park and, if so, (1) did you get the following documentation and (2) do you have a sample of what documentation we should use?
We definitely do not need to get into IRS trouble so any help with this will be greatly appreciated.

In reading an article about taxes for fulltimers at the "rversonline.org" site, I found the following:

"Note that income is not just salary. If you're getting a free RV space in exchange for helping out, you're getting income which is taxable. Depending on the going rate, you may be getting the value of, say, $20/night for helping out. If you do this for 10 nights, you have income of $200. But there is some rare good news in conjunction with this situation, which is not uncommon for RVers. Sec 119 provides if you're required as a condition of your employment to stay at the premises, the value of the lodging which you receive qualifies as "excludable income," meaning you don't have to report it on your tax return.

BUT (now hear this) you must document what you did and the value of nights lodging you received. You must of course report the amount of any salary you received. But it will be your responsibility to demonstrate, if challenged, what the value of the excluded income was. A good technique is to document the "going rate," plus the fact you were required as a condition of your employment to be there. It's a good idea to have the park manager sign your documentation. Keep the name of the manager, the phone number, dates, etc. Even keep a brochure which lists their rates. What's excludable is employer furnished meals and lodging. The W-2 filed by the RV park for your services at so many dollars per hour, while employed at an RV park, can trigger an IRS inquiry to the value of the meals and lodging you received as part of that engagement. That's why you'll need to have the documentation - in case you're challenged."
Larry

[ols1932]

I think you'd be best off following the law and taking advantage of any "break" you can get. It's not a good idea to seeing how you can avoid any taxation. If you need the work then do it and let the chips fall where they may. It's kind of like a Texas friend of mine told me he did. He bought a vehicle in Oregon (no sales tax), licensed it there with an uncle's address and drove it for two years before he finally licensed it in Texas. Now all he had to pay was the Texas Sales Tax on a "used" vehicle that had a great depreciation.

My address is in Texas. If I buy a vehicle anywhere it'll be licensed in Texas and the sales tax is paid there.

Orv

[Longwell]

Notice that I did not say I wouldn't pay any tax I owe.

I always have and I always will.

If you read the article, you would have seen that with the proper documentation the tax for site rent when volunteering anyplace would not be due to the IRS.

I simply would like to see what others have done to document the requirement of living on-site, so as to not have the tax burden.

Would you pay tax on something that is an honest deduction from your income?

This is an honest, normal and above-board effort.

Larry

[Trailer Trash 2]

quote:Originally posted by Longwell

Notice that I did not say I wouldn't pay any tax I owe.

I always have and I always will.

If you read the article, you would have seen that with the proper documentation the tax for site rent when volunteering anyplace would not be due to the IRS.

I simply would like to see what others have done to document the requirement of living on-site, so as to not have the tax burden.

Would you pay tax on something that is an honest deduction from your income?

This is an honest, normal and above-board effort.

Larry

I dont do what you guys do. but when you say volunteer isn't that for free, and if you get amenities for your service that is taxable I wiould think.

And arnt you allowed to work so many hours and at a sertain gross income before it becomes taxable but a form still has to be submitted to the IRS I would think, under the table is a differant story.