990 EZ with fund raising event

[Patrick Michael]

The more I read the instructions the more confused I get and need a sanity check.  NP client holds a golf event.  Tickets are $125, golf and dinner has a FMV of $75.  If I'm understanding correctly $50 (ticket price less FMV) goes on line 1 as a contribution.  $75 ($125 ticket price less $50 included in Line 1) goes on line 16B with the $50 included in line 1 entered in the parenthesis on line 16B. Line 6C is $75, the direct cost of the fundraiser ($50 greens fee and $25 dinner).  There were no other expenses for the fundraiser.

Is it correct that the IRS does not consider the $75 in direct expense as total revenue?  This is where I'm getting hung up since the Total revenue on line 9 does not equal the total revenue on the P and L.

As always I appreciate the collective experience and wisdom of all of you. 

 

[DANRVAN]

3 hours ago, Patrick Michael said:

Total revenue on line 9 does not equal the total revenue on the P and L.

My guess is that the P & L total revenue reports the gross amount from the fund raiser; and the cost is included with total expenses.

The line 18 amount on 990-EZ should match the P & L bottom line net amount.