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Accounting & Bookkeeping & Small Business Forum
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| Posted: Wed Jul 09, 2003 9:00 pm Post subject: What Is Considered Income? |
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| I run a daycare business, and we receive help from the casino on paying the employees and paying payroll taxes. I have a question the money we receive to pay wages is that considered an income. when we do our income vs expense report, we were asked why we don't put the amount received from the casino. isn't income, what you earned pertaining to your business. PLEASE help....so if money is given to us is that considered an income... |
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Guest
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| Posted: Wed Jul 16, 2003 9:00 pm Post subject: Re: What Is Considered Income? |
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| It sounds like you're right, and the other person is wrong. The question is: Is the casino receiving direct benefits as a result of your service. If the payments from the casino are subsidies to pay for daycare for their employees, then it should be revenue. If, on the other hand, they are simply helping your business out due to the goodness of their heart, then it should be a credit to expenses. |
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Guest
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| Posted: Sun Jul 20, 2003 9:00 pm Post subject: Re: What is Considered Income . . . |
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| If you are generating a P&L and you receive money from the casino and they require your P&L, they probably want a line item that reflects their reimbursements or payments to you. Whether these are reimbursements or revenues is probably not as big an issue as what the financial statements are providing for the users or benefactors of them [the statements'. For tax purposes, you'd be required to include these amounts in your gross receipts, though, so far tax purposes I'm pretty sure [from this distance] it would be considered revenue. I think the post was a little unclear about exactly what the casino was paying for... |
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