March 17th, 2016

TAX TIP OF THE DAY...  "GoFundMe" donations.

Are GoFundMe donations tax deductible?
Usually not.  Tax deductible donations must be paid to a non-profit organization and NOT TO INDIVIDUALS.  People often confuse the $14,000 maximum gift rule with the donation rule.  Yes, you can make a gift up to $14k to an individual and the gift is non-taxable to that person.  But gifts to individuals are not not tax deductible.  

However a business may be able to deduct a gift if it can qualify as advertising...  due to the public nature of the gift and its ability to promote business goodwill among current and potential customers.  

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If you need a tax appointment... www.baboiancpa.com