Community Cycles includes used parts as available for use by people earning/building a bike.
We do sell them as used parts. A separate category than new parts, but taxed just the same.
The income counts as sales of inventory.
When our accountant came on, he pointed out that we weren't counting donated bikes and parts as income. Especially if we're selling them later, they have value, and we now mark the donations down as income. We figure that donated bikes are worth about $100 per. That includes the shitty Wal-Mart abominations and the fancy old Italian road bikes that have lived in a basement for 30 years. They all even out.
This also beefs up our gross numbers. Instead of doing $50,000 in income in a year, we do $150,000. No, you can't take bicycles to the grocery store and buy things with them, but they can be liquidized.
On Tue, Sep 29, 2009 at 12:16 PM, The Recyclery info@therecyclery.orgwrote:
Hi all,
A financial question: When dealing with used parts, does your collective sell them like new parts and collect sales tax? Or do you give away used parts and suggest a donation for them? Or do you only use other options like work-trade?
This eventually has implications to filling out the IRS 990: is the income a "contribution" or included in "sales of inventory"?
Jesse
The Recyclery Collective 7628 N Paulina Chicago, IL 60626 P: 773.262.5900 F:773.751.5241 www.therecyclery.org
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