Tax Magick » Tax Tips for O.T.O. Members

Going to NOTOCON?

Vere Chappell — Wed, 18 Mar 2009 23:08:06 +0000

Get Uncle Sam to help pay for your trip!

Here’s how:

Step 1: Keep your receipts.

Keep your receipts for airfare, hotel, car rental, parking, taxi, and any meals you purchase during your trip.
If you drive your car to NOTOCON, keep a written log of your starting mileage (when you leave home) and ending mileage (when you get back). Also keep your receipts for gas.

Step 2: Get a letter from your local body.

The letter should say that you attended the National O.T.O. Convention in Seattle, Washington on August 7-9, 2009 as a representative of your local body.

Step 3: Deduct the cost of your trip on your 2009 tax return.

You can deduct your travel expenses as a Charitable Contribution on Schedule A.
If you drove your own car to NOTOCON you can also deduct 14 cents a mile for the trip. Or, you can deduct the cost of the gas, whichever works out better. But you can’t deduct both mileage and gas.
Note: you cannot deduct your NOTOCON registration fee, nor the cost of items that you purchase from the vendors.
If you add some extra vacation time before or after the conference dates, consult with a qualified tax advisor to determine how to take the deduction.

All of the above also applies if you are traveling to any other regional O.T.O. event such as Kaaba, Initiator Training, etc.

Feel free to contact me if you have any further questions.

Recordkeeping for your deductions

Vere Chappell — Fri, 13 Feb 2009 10:13:21 +0000

You will generally list your contributions to O.T.O. on Schedule A of your Form 1040 under “Charitable Contributions”. You will not need to send in receipts or other documentation to the IRS unless you are audited. But it is always a good idea to keep records backing up your deductions, for at least six years after the year when your return was filed.

Here are the records you should keep for each type of contribution:

Dues – A receipt from your local body (or a letter from Grand Lodge if you sent in your national dues directly) showing the date and amount of your payment is fine.
Donations – For small cash donations, such as jar donations at Mass, it is not necessary to have a receipt, but it’s a good idea to keep a written record. For larger donations, be sure to get a receipt.

If your donation is $250 or more, you should get a letter from your local body indicating the date, amount of the donation, and a statement that the body is tax-exempt and no goods or services were provided to you in exchange for the contribution. A sample letter is available here.
Expenses – Keep a copy of your receipts. For large purchases, have your local body write you a letter acknowledging receipt of the item. The letter will identify the item donated but won’t put a value on it — that’s what your receipt is for. A sample letter is available here.
Mileage – Keep a log book in your car (they can be purchased at any office supply store) and record the beginning and ending mileage of each trip to and from your local body, and any other OTO event or location you drive on OTO business.
Travel – Keep your receipts for airfare (a printout of your itinerary which includes the price paid for the ticket is fine), ground transportation, parking, lodging, and meals. Also, you should obtain a letter from your local body indicating that you attended the event (giving the location and dates of the event) as a representative of your local body.

Deduct Your Dues – and more!

Vere Chappell — Wed, 28 Jan 2009 03:35:35 +0000

There has been confusion in the past about whether O.T.O. dues are tax-deductible. Some have noted that dues paid to “fraternal organizations” are not deductible according to the IRS. Indeed this is the case for organizations like the Freemasons, which are usually organized as 501(c)(8) or 501(c)(10) organizations–in other words, their purpose is primarily fraternal. O.T.O., on the other hand, is organized as a 501(c)(3) organization–our primary purpose is spiritual (i.e. religious). Thus, our dues are considered to be contributions and are therefore tax-deductible.

The following types of contributions to O.T.O. are tax-deductible:

Grand Lodge Dues
Local Body Dues
Donations to your local body or to Grand Lodge directly. This includes cash donations such as jar contributions at Mass and admissions to events, and also donations of items (at fair market value).
Unreimbursed Expenses – if you buy candles or roses for your local body out of your own pocket and are not reimbursed, you can deduct these expenses as charitable contributions.
Mileage – you can deduct 14 cents a mile, plus tolls and parking, when you use your car to provide services for O.T.O. purposes. This includes driving to and from your local body if you are an officer or otherwise helping out.
Travel – you can also deduct the cost of airfare, lodging, meals, and local transportation if you travel for O.T.O. purposes at your own expense. This includes NOTOCON, Kaaba, Initiator Training, etc. if you are a member of a local body, therefore representing your local body at a national or regional convention.

The following types of payments to O.T.O. are generally not tax-deductible:

Initiation Fees
Bar Tips, Feast Fees
Newsletter/Journal Subscriptions
Purchases of Books, T-Shirts, etc.

As a general rule, it is not deductible if you get something tangible in return. Initiation fees generally cover actual expenses incurred in providing the initiation, exclusively for your benefit, and would therefore not be deductible. If you pay for food, drink, products, etc. then you are receiving something tangible in return and the cost is not deductible.

There are some grey areas such as fundraising dinners, raffles, auctions, etc. for which it would be prudent to consult with a qualified tax advisor before listing them as a deduction.

Feel free to comment here or contact me privately with any further questions or to ask about particular situations.