Tax liability for charity benefit ..

[nomas]

They are having a fundraising event for a Police Officer that was injured in the line of duty . At the end of the day he will be handed what is expected to be a large sum of cash . Obviously this money will be taxable . Are there any special rules for this or will his tax liability be determined by his income level ?
Does my question make sense ?

 

[atikovi]

What's large? $100,000? IF it's just a few thousand, I don't think I would bother.

 

[nomas]

What's large? $100,000? IF it's just a few thousand, I don't think I would bother.

I've heard estimates of as much as 40k .

 

[JayhawkRoy]

This article appears to explain some of the liabilities and consequences pretty well. Can't vouch for the source.

Do You Have to Pay Income Taxes on Money Received From a Fundraiser?

Fundraising proceeds aren't considered a taxable source of income. The IRS classifies the donations as gifts, which recipients don't need to report on their tax returns. Although the money you receive from the fundraiser isn't taxable, you could still owe taxes, depending on how the funds are...

budgeting.thenest.com

 

[nomas]

Interesting .

 

[atikovi]

he will be handed what is expected to be a large sum of cash

I've heard estimates of as much as 40k .

So he is going to be walking around with $40,000? Probably not the smartest way to give it to him.

 

[2005jettatdi]

A gift is not taxable to the recipient.

 

[Dave Hess]

They are having a fundraising event for a Police Officer that was injured in the line of duty . At the end of the day he will be handed what is expected to be a large sum of cash . Obviously this money will be taxable . Are there any special rules for this or will his tax liability be determined by his income level ?
Does my question make sense ?

Talk to accountant or tax attorney in YOUR state.

 

[nomas]

So he is going to be walking around with $40,000? Probably not the smartest way to give it to him.

That's not how it was going to go down . Actually there's been a huge shakeup . The Officer's wife has gone completely crazy and told the organizer that she want's full control of all funds immediately , and while the event is going on . She basically told the guy that she doesn't trust him and she will put her own people in charge of collecting money , raffle tickets , etc. He told her that the event is now hers to manage and he has relinquished all responsibility to her . She has no clue what she has gotten herself into .

 

[2005jettatdi]

That's not how it was going to go down . Actually there's been a huge shakeup . The Officer's wife has gone completely crazy and told the organizer that she want's full control of all funds immediately , and while the event is going on . She basically told the guy that she doesn't trust him and she will put her own people in charge of collecting money , raffle tickets , etc. He told her that the event is now hers to manage and he has relinquished all responsibility to her . She has no clue what she has gotten herself into .

Time to pull out. Also, if she does the fundraiser I think the proceeds will be taxable income.

 

[nomas]

Time to pull out. Also, if she does the fundraiser I think the proceeds will be taxable income.

She wanted it , she got it . My buddy had the process running like a well oiled machine and she got greedy . It's her problem now .

 

[cptbarkey]

Um, yeah that has red flags written all over it, including someone being spiteful and reporting folks.