2006-10-26 13:16:34 · 3 answers · asked by Gordo 1 in Business & Finance ➔ Taxes ➔ United States
The proceeds would be a gift to the recipient and not subject to income tax. Those who contributed could not take a deduction for any donation unless a 501(c) 3 was formed for the benefit of the recipient. The recipient should be at arms length from the organization of the benefit. This means that you can not organize a benefit for yourself and keep the money.
2006-10-26 19:24:08 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Taxable income, unless that recipient is a tax-exempt qualified organization under section 501(c) of the internal revenue code.
2006-10-26 14:45:50 · answer #2 · answered by rockEsquirrel 5 · 0⤊ 0⤋
I don't believe there are any. Everyone is allowed to give up to $12,000 to any single person with no tax consequences to either the giver or the recipient. These are gifts.
2006-10-26 13:42:08 · answer #3 · answered by irongrama 6 · 0⤊ 0⤋