Quote:
Originally posted by Tobra
Berettafan, you are a bit confused. Moses' time has value. He gives this time to an indigent patient for nothing. He incurs risk and expense at the same rate treating this person as he does treating anyone else. While donating this time, he could be doing something else, fishing, driving his car or what he usually does during business hours, see patients who do pay him for his time.
In the extreme case, he spends 100% of his time seeing indigent folks. The non-deductible cost in this case would be 100% of his income, his expenses do not change.
Is this helpful? I ask because it is quite clear in reading your comments that you don't understand this well at all.
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when he works for free he has no income; there is no 'deduction' for missing income. you don't pay tax on income you don't have. furthermore if you incur expenses in your business for a job in which you end up getting stiffed on you can still deduct those expenses.
I understand it very well thank you. i only posted to correct small details in a portion of Moses' post from an accounting/tax standpoint.
Moses is being forced to donate his time. that is the $$ discussion in a nutshell. he is not losing ANY tax deductions by doing so nor is he paying tax on income he never received.