Non-Profit gift/donation question....

Does anybody out there know if a person receives $$ from a non-profit do they have to report that $ and pay taxes on it?

Say for example if PIF was a non-profit and had given Mooch $10k in cash in 2013 would he have had to pay a bunch of it back to the IRS or ??

Thanks in advance!!

 

Sincerely,

Jim

I think it fall under the gift exclusion of $14k.

http://www.forbes.com/sites/deborahljacobs/2013/11/01/the-2013-limits-on-tax-free-gifts-what-you-need-to-know/

ruben

Its not income, its a gift.  if there was any tax it would be on the bearer.

say for example i donated $100,000 monopoly bucks to you, you wouldn't have to pay tax on it, but I might.

Thanks guys.

 

 

Sincerely,

Jim

Its not income, its a gift.  if there was any tax it would be on the bearer.

say for example i donated $100,000 monopoly bucks to you, you wouldn't have to pay tax on it, but I might.

Ummm ... wouldn't it fall on the receiver?

-Allen

Its not income, its a gift.  if there was any tax it would be on the bearer.

say for example i donated $100,000 monopoly bucks to you, you wouldn't have to pay tax on it, but I might.

Ummm ... wouldn't it fall on the receiver?

-Allen

LOL!

Ok...now I'm confused. 

Sincerely,

Jim

Assuming I got taxed when I earned the bucks before I gave it to you, I shouldn't be taxed again (double tax) for giving it to you.  You however should be taxed, above and beyond the gift limit.

-Allen

Assuming I got taxed when I earned the bucks before I gave it to you, I shouldn't be taxed again (double tax) for giving it to you.  You however should be taxed, above and beyond the gift limit.

-Allen

Ok, that makes sense, and the gift limit is 14K according to the link Ruben posted above right? So any gifts under 14k are free and clear??   

Sincerely,

Jim

The gift limit would not apply if the giver decides to pay the overage amount.

Assuming I got taxed when I earned the bucks before I gave it to you, I shouldn't be taxed again (double tax) for giving it to you.  You however should be taxed, above and beyond the gift limit.

-Allen

Gift tax is a form of double taxation.  If someone gives a gift above the limits, the giver pays the tax.  The receiver of the gift is not subject to any tax if it is a true gift. 

If it is income of any kind (for example, I gave $30,000 to you but in return you did all of my landscaping for a year), it would be treated as income and is taxable to you. 

If you win a prize on a game show for example, that's not a gift, that's a prize, and you would be responsible for tax.

There's a lot more around gift tax than the $14K annual exclusion, as there are lifetime exclusions also.

The purpose of the gift tax is to prevent people from circumventing the estate tax.  So you can't just be giving me $100,000 as a tax free gift and then it won't be part of your estate when you croak. (of course that nominal amount of $100,000 would be tax free, but I think you understand the gist of what I'm saying)

Um  yeah ... I'm wrong.

It's not like I'm handing out $14K gifts all the time.   

-Allen

Um  yeah ... I'm wrong.

It's not like I'm handing out $14K gifts all the time.   

-Allen

No worries, back in tax class in college it was considered a common misconception.  When you understand the purpose of the gift tax it makes sense, even if people disagree with the estate tax.

Thanks Ben.

I really appreciate the clarification cuz I have no clue about this stuff...

 

Sincerely,

Jim

I will say one thing though. This only applies to the receiver. PIF for example wouldn't be a non profit unless it follows charitable organization tax law. That of which I'm not well versed in.

Sent from my Galaxy Nexus using Tapatalk

And let me add...

Jim, when you end up in jail, text me.  you got the number