Training Information Series
TI-1, TAX DEDUCTIONS
This Training Information paper deals with expenses incurred with UFO investigation and research, and tax benefits that can offset these expenses. While this is NOT a policy statement, it is information that each FI/researcher should be aware of. This TI should be kept with other directives.
A surprising number of researchers do not realize that their expenses incurred for investigations or administrative duties are tax deductible. As stated on the inside cover of every MUFON UFO Journal: "The Mutual UFO Network, Inc., is exempt from Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code. MUFON is a publicly supported organization of the type described in Section 509(a)(2)." Which is to say, we are a scientific research organization.
Actual expenses incurred (i.e. not to include estimates of worth for duties performed) include: mailings (stamps/metered costs, materials and photocopying), long distance telephone charges,
equipment purchases (e.g. telephone answering machine or two-drawer file), ID printing (letterhead or calling cards) and transportation pursuant to investigations or meetings (mileage at 12-cents per mile, still in effect this date, meals and lodging if necessary). Certainly good judgment must be used. A word processor or audio cassette recorder may be claimed if used primarily for MUFON purposes. UFO-related handbooks and encyclopedias, science texts used for the subject, nonfiction works on UFO cases that provide background information, and other investigative tools purchased for yourself or your membership are normally deductible. Receipts must be kept for all expenses. In order to submit the claim, you must use IRS Form 1040 schedule A - Itemized Deductions and Form 8283, Noncash Charitable Contributions. (Check with your tax consultant on form numbers or titles which may change over the years). A separate statement must accompany the forms which includes the above-quoted statement regarding MUFON's tax-exempt status.
We hope that this information will help you in determining what expenses