I’m still pondering the fundraising. In 2017 GARD reported $8,256 in fundraising income (2017 990 Part 8 line 1C) and nothing on lines 8a-c. Okay, so they did more than three times their 2017 fundraising in 2018 ($28,602) and paid so much for it that their net in 2018($1,288) is three and half times LESS than their net fundraising revenue in 2017 ($8,256) Anyone else see a problem here?
A huge discrepancy between 2017 and 2018 occurs on Line 21 of Part 9: depreciation, depletion and amortization.
**Important: depreciation cannot be applied to land (https://www.accountingcapital.com/other-topics/why-is-depreciation-not-charged-on-land/)**
So what assets did GARD possess in 2018 that depreciated/depleted/amortized to the tune of $21,630?
I’ve personally seen two vans. One is a Nissan and has a cracked bumper but otherwise looks okay . Maybe two or three years old? If you happen to know please chime in!
I have much more information on the second van as I caught all of it on video. It’s a Nissan NV2500 HD, Georgia tag #PXD8972 with an April expiration month. Some rust I think, a few dings. Since everyone knows Carfax I used their site to get a SWAG value of between $15,000 and $24,000 (some outliers on either end but the van I saw appears to be a 2018.)
Depreciation is one of those accounting chimeras that can vary based upon which equation one uses. Using the most generous depreciation calculation I can locate (200% DB) with date placed in service between January 1-September 30, 2018, assuming 80% of the mileage is business related and using $17,000 as the purchase price, depreciation for the NV2500 on the 2018 990 would be $2,720 (see MACRS Depreciation calculation at https://fitsmallbusiness.com/car-depreciation-deduction/ )
For the first Nissan van with the cracked bumper, let’s be really generous and say it’s the same as the NV2500. So total vehicle depreciation in 2018 is $5,440.
Huh. We still have to account for $16,190 of depreciation. Or perhaps it’s depletion? Hard to know for certain given GARD’s utter lack of transparency. I know for certain the remainder is not related to GARD’s land, both existing and that purchased in 2018 because again, land cannot depreciate. Then there’s the fact that the deed is in the name of Joy Bohannon, not GARD. So maybe it’s the two mobile homes on the property?
It’s going to get long again so I’ll break here and pick it up tomorrow and hopefully begin with photos of the mobile homes, deed information, etc. It’s a lot.