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Re: redistributing linux CD's


On Tue, Nov 20, 2001 at 11:53:49AM +0100, Ionel Mugurel Ciobica wrote:

> I just want to help people that have no easy way to get access to
> linux. (In Romania, for instance, the internet connection with the
> Western contries is at verry low speed and most of the people don't
> have a couple of dollars to by the CD's.)

> As I said, I don't want to make this at large scale. I prefer to
> burn the CD's only when someone ask me for it.

Well... You won't get much below a couple of dollars/euros... A Woody
for i386 is 5 CD's. What does a blank CD-R cost? About 25 cents,
doesn't it? Well... 1.25 EUR. If one doesn't have 2 EUR, is 1.25 EUR
really different? (OK, it is 37.5% less... Bof...)

Pressing them can get a lower price, but then you must kick into large
scale.

IANAL, but I think if it is really low scale, don't put up an
organization and put it in your tax declaration:

 - Income from selling Debian GNU/Linux CD-ROMS: 20 EUR
 - Costs for blank CD-R's                      : 20 EUR
 Net income from CDROM business		       :  0 EUR

Keep _all_ receipts of buying blank CD-R's to justify the costs, and
keep a detailed journal:

 - 25/8/2002: Debian 3.0r1 (5 CD) to Joost Van Baal ... contact
   info... 1.25 EUR
 - 4/11/2002: Debian 3.0r2 free only (4 CD) to Lionel Mamane
   ... contact info... 1 EUR

This will work if you really just ask for the exact costs of the blank
CD-R's. If you want to somehow "pay" for the CD-burner and
electricity, etc by it, you must enter complicated calculations "I use
my the burner 95% for private, 5% for that 'business', so I can deduct
5% of the cost of the burner, divided by the expected number of sales,
etc." And be prepared to argue why 5% and not 3%. And you might have
to add VAT then.

That much for "the law". I don't think the IRS will quibble for 5% or
3% if it is low scale... But don't put 100%!

Don't forget: If you take one single cent benefit on a CD, you should
pay VAT (on the _whole_ amount). If you really make it for no-benefit,
no VAT.

Again, IANAL and IANATC (I Am Not A Tax Counselor).

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