Are GoFundMe Donations Deductible?
May 01, 2023I'll be discussing the tax implications of contributing or receiving money through crowdfunding platforms such as Go Fund Me. It's important to understand that when you give money, the receiver dictates whether or not this is deductible on your own taxes. It's important to keep this in mind when making contributions.
It's also important to know how much you can contribute before gift taxes come into the picture. Depending on the amount you contribute, you may need to report it on your taxes. I'll cover the specific amounts and guidelines to help you navigate this process.
They key takeaways from this episode are:
1. When contributing or receiving money through crowdfunding platforms such as Go Fund Me, it's important to be aware of the tax implications involved.
2. The receiver of the funds determines whether or not the contribution is deductible on your own taxes, so it's important to keep this in mind when making contributions.
3. Depending on the amount of the contribution, there may be gift tax reporting requirements, and this can vary depending on the specific guidelines and amounts.
What you'll hear in this episode:
[1:00] Contributing or receiving money to Go Fund Me (or similar) has specific tax implications that you need to be aware of.
[1:45] When you give money to a campaign, the receiver will dictate whether or not this is deductible on your own taxes.
[3:15] How much can you contribute before gift taxes come into the picture?
[4:20] If you are a business owner and want to receive funds through one of these platforms, what are the tax implications for you?
Related episodes:
Why Paying Yourself a Reasonable Salary is Critical for S Corp Owners
What is Considered Tax Deductible?
Taxes for Gambling with Zak Zimbile
Resources:
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
