Posted on 11/17/2017 5:08:13 AM PST by TigerClaws
It that now obsolete information?
They're gifts given by individuals to someone. Not taxable to the recipient, or the organizer of the fund.
The 1099K is simply a reporting of electronic transactions that either exceed a certain number of total transactions, or a dollar threshold. How this money is treated for tax purposes varies depending on the nature of the situation.
If the recipient of the funds from GoFundMe is doing nothing in return for those funds they are considered a gift.
Unless the giver exceeds the gift tax threshold limit for the year, no tax is due. The recipient of the gift should not be taxed on it. The person who set up the fund should also not be taxed on it. Think local fundraiser for a sick kid. When the kitty is passed around, those donations are not taxable to the recipient or the organizer of the fundraiser. GoFundMe is like that, but on a national or global scale. Again, it's determined by the situation of each individual fund. Some folks are receiving things for their donations, and depending on the situation, it may be taxable to the recipient, but in this particular case, it is not.
Gift taxes are subject to gifts that exceed $14,000 per recipient, and are paid by the giver of the gift, not the recipient.
The wussy DA said he would not prosecute her for disorderly conduct even though the profane bumper sticker and its insulting tone completely fits the bill for disorderly conduct according to the statute. So, I guess she did have carte blanche after all.
Sorry, I was conflating deductible and taxable. In this case, the gifts are neither deductible for the giver nor taxable to the recipient/organizer.
Depending on the size of the gift, it may be taxable to the giver, but it still won't be to the recipient.
At the link, near the end of the column, a case that went to SCOTUS is highlighted in orange.
SCOTUS disagreed with you.
Well I guess you’re right! In the Soviet Union, you couldn’t say “Down with Reagan.”
You got me there!
No, it's "and", not "or". Both thresholds must be crossed for the 1099K to be triggered. I have seen this stated incorrectly elsewhere, but the IRS makes it quite clear. And the IRS doesn't know from the 1099 that they receive what the source and destination of the money is. All they know is the amount, and the entity that processed the transactions.
Donations to the GoFundMe account are not tax deductible as you say, subject to the $14K exclusion limit. In most cases, the eventual recipient of the money isn't taxed either.
The problem lies with the middleman, the person who started the account. He collects the money and then supposedly doles it out to the beneficiary. But what if he pockets some or all of that money?
The recommendation I have seen is that the account should be set up in the name of the beneficiary, using the SSN/TIN of that person.
I am not saying that the middleman will necessarily end up paying taxes, only that he will have to deal with the inevitable questions from the IRS if his return doesn't account for the money. That could mean hiring a CPA or even a lawyer. That's the surprise I was talking about.
There was a time when using the F word in public would get you taken behind the bar and the coon dog poop beat out of you.
But that’s when people were more civilized back in the 1950s and before. Then came the Hippie movement and so-called Free Speech”. Vileness in speech suddenly became the goal.
ARE You $#!TT!NG ME !!!! $100,000.00 BECAUSE she FLIPPED SOMEONE THE BIRD and what ? got arrested for it?
I did a GFM Page to try and reach My $6321.90 Medicaid Deductible set by the State so I could get coverage back.
I got $50.00 from 1 Family Member to the GFM Page and One GOOD FReind sent Me $100.00 not via GFM Page.
Jeeze, You tell the truth and get dumped on, Ya LIE Your A$$ off and get MegaBucks.
Down is up and up is down in this world anymore....
Forty miles of bad road, that one.
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