tents for camping under $100 image
Jessi S
Myself and a group of friends are going on a camping trip in which we create a large elaborate camp with Moroccan tents for public spaces, a kitchen with prepared meals, generators, lighting, and rented moving trucks for transport.
I have been doing the collection for the money, and I've been storing it in a bank account. There are 40 people who will be paying into the camp fund, and who will be joining us on our elaborate camping trip.
Because I've been storing the money in a checking account I'm worried that there is going to be an IRS (and state) tax implication. Is there a way to pro actively protect myself from being taxed on this money which is not mine, and I am not using for any personal purposes? How much do I need to worry?
The checking account the money is in is ONLY being used for these camp funds. My personal funds have never commingled with these funds.
I am a member of the group that is going to be camping.
At no point would I ever consider these funds my own.
The bank account was opened by myself, but I added the camping trip's leader onto the account.
Answer
Everyone is pooling their money, and the money is being used for a specific event to the benefit of everyone who contributed. If the money collected is going into a checking account in your name, then it is considered income to you, and you are responsible for any tax liability. The bank is going to report the interest earned in your name, under your social security number, listing you as the owner of the account.
http://www.irs.gov/newsroom/article/0,,id=107817,00.html
If you don't think this is fair, at least one person agrees with you. His name is Willie Nelson who got hit for millions of dollars of taxes due relating to his Farm Aid concerts.
If the money is your bank account, then do not distribute 100% of the money. Your camping group will understand that the taxes due are an expense to be paid just as important, and legitimate as the moving van bills, generators, and tent rental. The IRS is using you and your tax return in order to collect the taxes due on the money, even if as you say, you do not consider the money as your own. If you don't report the money in the bank account as income, your risk is that it could show up in an audit, and penalites added to the tax due.
If the money goes into a "camp fund" checking account, that you started, in the name of the camping group, then the camping group is responsible for any tax liability.
Keep accurate records and make a final accounting report available to other members of the group showing the money that was collected and the expenses that were paid.
It might be good to register your group as a tax exempt Social Club, especially if your camping trip is an annual event.
IRS Publication 557:
http://www.irs.gov/pub/irs-pdf/p557.pdf
http://www.irs.gov/charities/nonprofits/article/0,,id=96189,00.html
http://www.irs.gov/charities/article/0,,id=96339,00.html
Look to the camping trip leader for guidance on this. If the leader's name is on the account, that person can withdraw any funds they wish at any time.
Talk to your bank, and consider placing the camping trip funds in an escrow account rather than a regular personal checking account in your name. An escrow account is used to "hold" money that doesn't belong to you, or money you are managing for others.
Everyone is pooling their money, and the money is being used for a specific event to the benefit of everyone who contributed. If the money collected is going into a checking account in your name, then it is considered income to you, and you are responsible for any tax liability. The bank is going to report the interest earned in your name, under your social security number, listing you as the owner of the account.
http://www.irs.gov/newsroom/article/0,,id=107817,00.html
If you don't think this is fair, at least one person agrees with you. His name is Willie Nelson who got hit for millions of dollars of taxes due relating to his Farm Aid concerts.
If the money is your bank account, then do not distribute 100% of the money. Your camping group will understand that the taxes due are an expense to be paid just as important, and legitimate as the moving van bills, generators, and tent rental. The IRS is using you and your tax return in order to collect the taxes due on the money, even if as you say, you do not consider the money as your own. If you don't report the money in the bank account as income, your risk is that it could show up in an audit, and penalites added to the tax due.
If the money goes into a "camp fund" checking account, that you started, in the name of the camping group, then the camping group is responsible for any tax liability.
Keep accurate records and make a final accounting report available to other members of the group showing the money that was collected and the expenses that were paid.
It might be good to register your group as a tax exempt Social Club, especially if your camping trip is an annual event.
IRS Publication 557:
http://www.irs.gov/pub/irs-pdf/p557.pdf
http://www.irs.gov/charities/nonprofits/article/0,,id=96189,00.html
http://www.irs.gov/charities/article/0,,id=96339,00.html
Look to the camping trip leader for guidance on this. If the leader's name is on the account, that person can withdraw any funds they wish at any time.
Talk to your bank, and consider placing the camping trip funds in an escrow account rather than a regular personal checking account in your name. An escrow account is used to "hold" money that doesn't belong to you, or money you are managing for others.
What is a Best tent for camping in the heat?
b w
I am going to a festival that the heats gets a little much in the mornings, I understand tent fans are around so i guess which is the best tent fan/ tent combo. I do not want a pro one thats super $$ just in case it has to be left behind at the concert (on the other side of the country) heh thank you for your time and answers
Answer
Tarps and hammocks are the best. They make hammocks with mosquito netting built in if bugs are a problem.
Tarps eliminate walls and you get more ventilation. No privacy really. You can pitch it low over a rope (tied between two trees and knotted to maximize opposing forces, you want it really tight) into an A frame that doesn't quite hit the ground, or into a modified A frame where one side is longer than the other, or a flat plane on an incline with the tarp opening to the private side. You still get more circulation under a tarp because the ends are open, you can cover them in rain with what is called a "beak", by using a poncho or a piece of plastic.
When you use tarps, you also want a ground cover, this could be a piece of 6 mm plastic, a neat sheet, or a piece of nylon from Walmart's clearance fabric dept or even a trash bag that you cut open.
Campmor and REI have great tarps, look for their 8x10 nylon tarp, it is waterproof, and very easy to use, grommets, for about 40 US dollars. You have to get your own line to pitch it with. Nylon masonry cord in bright colors is great. I always color coded mine to find corners vs sides. Tarps can also be plastic, such as you would throw over the bed of your pickup or a stack of firewood, or you can use any piece of waterproof material that you can tie corners into a sheetbend (a knot). You can get all kinds of tarps, all different carry weights, etc. I always had great results with the first one I mentioned, from www.campmor.com
Mosquito hammocks are great. For shelter over you, pitch a tarp as above, just higher, no ground cover needed. What is so cool about these is that you get air circulation all around you. Sucks in the winter so I always hit the ground but in summer there is NOTHING better. Your pack goes underneath you for maximum shelter of you and your gear, if you have it with you. So you don't need a lot of surface area under the shelter, use a smaller tarp, save packweight.
Hennessey Hammocks offer a lot of hammocks, they all have rainflys which attach directly to the hammock, eliminating the need for a tarp. Very popular. I never did like them.
Other hammock brands, these are cottage industries for the most part...so supporting small businessmen, you will pay more to buy from the little guys:
Speer
mosquitohammock.com
Crazy Creek
Clark or Clarke (not sure sp)
Byer of Maine
Travel Hammock
(above are all silk or nylon hammocks) Prices for these vary a lot. With a bugnet you will pay more. Without, they can start at 15 dollars....Hennesseys start at about 100 dollars.
You can also get rope/mesh/net ones that leave nice waffle prints on your butt, and these are available at most discount stores for about 10 dollars.
Have fun, don't forget your bug net if you are near water.
Tarps and hammocks are the best. They make hammocks with mosquito netting built in if bugs are a problem.
Tarps eliminate walls and you get more ventilation. No privacy really. You can pitch it low over a rope (tied between two trees and knotted to maximize opposing forces, you want it really tight) into an A frame that doesn't quite hit the ground, or into a modified A frame where one side is longer than the other, or a flat plane on an incline with the tarp opening to the private side. You still get more circulation under a tarp because the ends are open, you can cover them in rain with what is called a "beak", by using a poncho or a piece of plastic.
When you use tarps, you also want a ground cover, this could be a piece of 6 mm plastic, a neat sheet, or a piece of nylon from Walmart's clearance fabric dept or even a trash bag that you cut open.
Campmor and REI have great tarps, look for their 8x10 nylon tarp, it is waterproof, and very easy to use, grommets, for about 40 US dollars. You have to get your own line to pitch it with. Nylon masonry cord in bright colors is great. I always color coded mine to find corners vs sides. Tarps can also be plastic, such as you would throw over the bed of your pickup or a stack of firewood, or you can use any piece of waterproof material that you can tie corners into a sheetbend (a knot). You can get all kinds of tarps, all different carry weights, etc. I always had great results with the first one I mentioned, from www.campmor.com
Mosquito hammocks are great. For shelter over you, pitch a tarp as above, just higher, no ground cover needed. What is so cool about these is that you get air circulation all around you. Sucks in the winter so I always hit the ground but in summer there is NOTHING better. Your pack goes underneath you for maximum shelter of you and your gear, if you have it with you. So you don't need a lot of surface area under the shelter, use a smaller tarp, save packweight.
Hennessey Hammocks offer a lot of hammocks, they all have rainflys which attach directly to the hammock, eliminating the need for a tarp. Very popular. I never did like them.
Other hammock brands, these are cottage industries for the most part...so supporting small businessmen, you will pay more to buy from the little guys:
Speer
mosquitohammock.com
Crazy Creek
Clark or Clarke (not sure sp)
Byer of Maine
Travel Hammock
(above are all silk or nylon hammocks) Prices for these vary a lot. With a bugnet you will pay more. Without, they can start at 15 dollars....Hennesseys start at about 100 dollars.
You can also get rope/mesh/net ones that leave nice waffle prints on your butt, and these are available at most discount stores for about 10 dollars.
Have fun, don't forget your bug net if you are near water.
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Title Post: Tax implications of collecting money for a group to be used for that groups camping trip.?
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Rating: 100% based on 9998 ratings. 5 user reviews.
Author: Unknown
Thanks For Coming To My Blog
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