What to do with Scrap?

[mulefool]

That's true. My granddaughter has made belts, bracelets, bookmarks and gosh knows what else for all her friends and family. She loves it. Maybe THAT'S who should be makin the coasters!

[Blake]

Scrap is a great subject as we are all infected with it.

I found that donating it to Church or Scout groups works well as it is deductable with a reasonable value on it.Sometimes I will donate a day or so to groups to get them kick started and that is also deductable so it is a win win situation for everyone.

I have a very treasured collection of Thank You items made from the scrap by the groups and that in its self is worth it.

Hey Go2Tex where are you moving to and where from? If you are close when you get here maybe we can meet up.

Kind Regards

Blake

[Art]

Hi Blake,

Youse guys better watch your deductabizing stuff. If you have a business then the scrap has already been expensed when purchased or when it was generated from a job. My salary is already expensed when I pay myself from the business so time is never deductable for any reason. The expenses are deductable so you can't donate them and claim them again, however they are income if you sell them. The only thing I get away with on Scouts is mileage and occasionally meals. However, you do not have to claim the value of the good will.

What the business makes is income and what it spends (including salary and taxes) is expenses and after that; well there ain't very much of after that so I'll draw that off of capitalization or retain it against capitalization so it's not taxed either way (capitalization was taxed before it went in).

Just don't give them stuff to bitch about because then they go back six years looking for it. They understand income and expenses and that donations are expenses, just let Sammy have his and play by the rules.

Been there and done that and don't need it happen again.

Art

Scrap is a great subject as we are all infected with it.

I found that donating it to Church or Scout groups works well as it is deductable with a reasonable value on it.Sometimes I will donate a day or so to groups to get them kick started and that is also deductable so it is a win win situation for everyone.

I have a very treasured collection of Thank You items made from the scrap by the groups and that in its self is worth it.

Hey Go2Tex where are you moving to and where from? If you are close when you get here maybe we can meet up.

Kind Regards

Blake

[MatthewD]

My 9 year old son is attempting to solve any scrap problem I might have, he has found that by watching Dad that he might learn out to do some tracing on leather but I am not ready to hand him a swivel knife just yet..

[Art]

Another thing about scrap. Don't let the dog get into it. Rawhide is ok, but veg tan or most other tans give them some problems. I don't know if it will kill them, but it can make them barf all over the floor. I keep it up off the floor but they can snatch a piece off the desk if you leave the room, mine takes it and hides it so she can work on it later; sneaky little b****.

Art

My 9 year old son is attempting to solve any scrap problem I might have, he has found that by watching Dad that he might learn out to do some tracing on leather but I am not ready to hand him a swivel knife just yet..

[barra]

Most of my scrap is strapping so very little is scrap. I have bins with various width straps. If I want 3/4", I know exactly where to start rummaging. Largish scraps get turned into things like head/round knife holders, beer can coolers, carved with someones name or logo, horse brasses for decorations (it's a British over the fireplace thing). I have in the past gone crazy with wad punches and turned a piece of scrap into leather washers. to me nothing is scrap. I will use a small piece as glue spreaders, test peices on the stitcher or K6, experimental pieces if I am playing with stamping patterns, experimental dye test pieces, building up a tree to make a little channel for welts to sit in thus avoiding a lump, stropping boards. I even keep all my skiving scraps and the slivers of leather after edging a strap. These I feed into an old coffee grinder and eventually mix with PVA for odd leather dust applications. Soft leather scraps get turned into coin pouches, steering wheel covers, book marks.

Barra

[Go2Tex]

............well there ain't very much of after that so I'll draw that off of capitalization or retain it against capitalization so it's not taxed either way (capitalization was taxed before it went in)........

Art

Oh jeeze.... stop it. You're making my head hurt. My eyes glaze over everytime I read some article about taxes and business this and that. I understand income and I understand outgo. As long as I have more income than outgo and I don't try to deduct a trip to the Mustang Ranch as a business expense, I rather doubt Ol' Comrad Samski will be snooping around my underwear drawer for a little undeclared income..... besides, that ain't where I stash it anyhow. I do appreciate the correction on deducting the scrap. I hadn't considered that it was already written off.

Speaking of articles that make your eyes glaze over, did anyone understand that last one in the Journal about being your own employee? Can this guy make things complicated or what? If I'm my own employee, I'm gonna ask myself for a nice big raise and nice comfy office..... and eh....oh yeah, and a sweet young thang to take dictation.....

[Go2Tex]

Well, as they say, one man's scrap is another man's future key fob.

[K-Man]

Go2Tex:

The taxing and related issues can be a bit much to digest at times. That's why I keep in touch with my accountant and my attorney - to help me keep it all straight. :scratchhead: At least that's what I pay them to do....

[mulefool]

I started to read that article in the journal, too. Notice I said "started". Couldn't keep with it. Although I do like the idea of being an employee with a wage tied to how many hours I work. That'd be a new one for me.