We had someone locally who had a fund raiser thrown for them because they were injured while fighting a fire. A pretty nice sum (over 40,000) was raised. That got me thinking about what the tax implications were. Do they have to pay taxes on it since there was no large donation by a single person over 10,000?
1 response so far ↓
1 stupid hubby
Gifts are not taxable income to the recipient. If you give money to your children or to a friend, the gift is income tax free to the recipient. If the gift is in excess of $12,000.00 then the donor may have some tax implications….but I think that is beyond the scope of your question.