Tax Law (Questions About Taxes)/Misson Work

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Question
For 2011 taxes I was told by an expert that money I raised for short-term missions given directly to me, made out in my name, was a gift and not taxable. Has any laws changed to change this situation?

Answer
Sara:

IRS Publication 526 prohibits contributions to individuals. "You cannot deduct contributions to specific individuals, including the following.
-- Contributions to individuals who are needy or worthy. This includes contributions to a qualified organization if you indicate that your contribution is for a specific person. But you can deduct a contribution that you give to a qualified organization that in turn helps needy or worthy individuals if you do not indicate that your contribution is for a specific person.

With that in mind, any money given to you directly as a gift will be taxable to both the giver and the receiver of the gift.  If you become a 501(c)(3) the gift becomes a tax deduction for the giver and income to the receiver.  Either way once the money is received its is income reportable as income only the accepted cost of operations deducted from the income to reduce the gross received.

I can not answer to the previous experts answer to your inquiry since this has been the law even back in the 60's, when, I was in college.

John

Tax Law (Questions About Taxes)

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John L. Tidwell

Expertise

Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.

Experience

Over 20 years of field audit experience with a state agency

Organizations
none

Publications
none

Education/Credentials
Degree in Accounting from Falls Business College

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