Do We Pay Taxes on Donations to Us?

[Unregistered]

Hello,

We were offer a donation for the children that is valued to $2000 (tickets to somewhere). Do we pay taxes on this donation?

Is a great offer but I wonder if there is a downside?
Thank you!

[Michael]

When it comes to the IRS any income or gift is subject to tax. What comes to mind is when Oprah or Ellen DeGeneres gave away those cars on their shows. The recipients have a lot of taxes to pay on those gifts.

[TomCopeland]

donation

Hello,

We were offer a donation for the children that is valued to $2000 (tickets to somewhere). Do we pay taxes on this donation?

Is a great offer but I wonder if there is a downside?
Thank you!

If you are given a gift to your day care children from a parent, it's taxable income.

[Unregistered]

Is a gift from a local business, they will like to give us tickets for a show but they asked for my tax ID. All of the families and their children will get tickets so none of it will go toward me personally.

[TomCopeland]

donation

Is a gift from a local business, they will like to give us tickets for a show but they asked for my tax ID. All of the families and their children will get tickets so none of it will go toward me personally.

The value of the tickets are income to you. Since you will be using the tickets for your clients and their children, you can then deduct the value of the tickets as a business expense. The business can't use the tickets as a charitable donation because you are not a charity.

[Unregistered]

The value of the tickets are income to you. Since you will be using the tickets for your clients and their children, you can then deduct the value of the tickets as a business expense. The business can't use the tickets as a charitable donation because you are not a charity.

I understand now. Then if I deduct it as an expense, I will not need to pay taxes. That is great.

Thank you so much for your reply!