Half $, Half "In Kind" - Help! ATTN: TASH!!

Got an inquiry from the movie theatres. Haven't even asked for rates, but they've already asked if we'd be willing to accept half cash, half movie admission passes.

I'm keen on the idea, but am wondering - how do you file that on your taxes? Obviously a bit different outside of Canada, but I remember that Tash has been doing this, and a couple of others, though I can't really remember...glitterfly, was that you?

Would love to hear how you change your contract to accept in kind payments, and how you deal with your taxes this way.

I wouldn't even claim it on taxes... just claim the cash and keep the rest

Haha. But how would you ensure that you'd get the non-monetary half without a contract? And with a contract, that's still payment of sorts...oh, I'm all a fluster, lol.

I just had a Ski MT. ask if I would do Oktoberfest in exchange for lift tickets.
I don't ski nor does my daughter but I figured there were restaurants and places to stay so maybe that in trade?
How would you work that?
Thanks

The lawyer I used to work for years ago would issue what he called "contra accounts". For example, we had some renovations done by a client of ours under the understanding that it would be paid in kind with legal work. So when the bill for the renovations came in, my boss would have me do up a bill that totalled the same amount for the legal work we did, and then on the next line write "Contra Account #XYZ dated (whatever)" and subtract that balance, so that the balance due and owing was zero.

So I would suggest (since you seem to want to be all legal about it), that you do up an invoice, total it, then subtract "Payment in kind" for the total amount of the tickets, with the balance to be paid in cash.

Really, whether they pay you in cash dollars or in coconuts, you still are supposed to claim the total amount billed as you did receive payment for that amount. But I'm sure many people do not.

I would do it the exact same way as Isabelle is describing.

Yep. Invoice for the full amount, then record payment as part cash, part the value of the passes. The passes are then recorded as income on your books. Simples.

Thanks! That's awesome - just what I wanted to know.

Sorry I didn't see this before Kristal,


I did work for cash and movie tickets - they gave me cash and about 10-12 movie tickets per weekend. I invoiced them a receipt after.
In total for 5 weeks work I got $5000 about 42 movie passes... which mostly I gave away as we could never agree which movie to see. lol

I only told the tax man about the invoices so he knows nothing of any tickets!.....Tickets? what tickets?

Wow Tash, that sounds like a cool gig!

Were they having a special celebration at the theater?

LOL, Tash! I swear, there were no tickets...

So I finally got a call from the movie theatre itself tonight. Turns out it's a fundraising event. I ran her through my regular corporate pricing, but not my charity/non-profit stuff, and she asked about that 50/50 split. I said I'd get back to her.

I do want this gig, but it sounds like they want 2 artists and the budget doesn't sound too, too promising (hence wanting the split).

They didn't ask about a non-profit rate, but I do know they've gotten info from a handful of other fps...

I'm thinking of saying that if they want to split 50/50 I'd be okay with that from regular pricing (2.5 hours/service, so 2.5 hours paid, and 2.5 hours worth of passes, I guess) OR my non-profit rate, but no split.

Would that sound like a fair set of options?

FYI - got the gig

Just me doing fp, no 2nd artist. 50/50 split. Now I get to write the contract and try to make it make sense