Posts Tagged ‘Gifts’

“Crowdfunding” – Are The Funds Taxable?? Do You Need To Keep Business Records??

Monday, March 21st, 2022

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

“Crowdfunding” is one of several Internet-based activities in which parties can receive funds from entities and individuals whom they have never met, or do not know.  There are websites that specialize in these activities.  Suppose you received a 1099-K  [“Payment Card and Third Party Network Transactions”]  What do you need to do?  What actions are you required to do?

Have you been keeping accurate business records from Day One?  Will your business records meet or exceed the IRS standards?  Recordkeeping | Internal Revenue Service (  Were the funds considered to be “gifts” or did you provide material, products, or services in exchange for the “gifts” or “donations”??


Gifts To Others, Gift Taxes, & Gift Tax Returns

Tuesday, March 29th, 2011

The Federal tax laws permit the tax-free giving of “gifts” to others throughout the year, subject to the annual exclusion amount limitations.  “Gifts” in this article are not the same as “charitable contributions” or donations.  For example, you can not deduct amounts which are given to politcal organizations as a “charitable donation” but a “gift”  to that organization can be made.

The 2010 annual gift exclusion limitation was $13,000.00 per recipient.  A husband and wife will have a $26,000.00 annual limitation, but read the requirements for “gift splitting” below.   It is also important to understand when a United States Gift (and Generation-Skipping Transfer) Tax Return (Federal Form 709) is required to be filed.   Unless the U.S. Congress changes the annual limits, the same annual exclusion amounts are applicable for 2011.    The IRS website provides information for Frequently Asked Questions (FAQs) on this subject.  (more…)