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
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David S. Baboian, CPA