Hello,
This may have been asked before but I couldn't seem to find an answer so I thought I would ask.
When someone donates to a NFOserver coffer, does NFOServers have to do taxes on the donation or does the person renting the server space need too?
Server Coffer
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Re: Server Coffer
By taxes do you mean legal taxes or processing fees?
Re: Server Coffer
The taxes that you would do at the end of the year, so legal taxes I am referring too.
Re: Server Coffer
In terms of potential income tax implications, that's not something that would be on our end, so you'd need to talk with your accountant about it.
In many cases, there would be an argument to be made that the other person is helping to pay for a service indirectly and that his or her portion would be a share and not a gift, or that it doesn't benefit the receiver enough to be considered a gift.
Also, in most cases, even if a donation were considered a simple gift, it would be small enough that it wouldn't exceed the annual gift tax exclusion per giver, which is currently $15k at the federal level in the US. If the gift were particularly large and did exceed this, the excess should go against your lifetime exemption. Your accountant can provide details on how this works, and help you with any forms that you'd need to fill out.
In many cases, there would be an argument to be made that the other person is helping to pay for a service indirectly and that his or her portion would be a share and not a gift, or that it doesn't benefit the receiver enough to be considered a gift.
Also, in most cases, even if a donation were considered a simple gift, it would be small enough that it wouldn't exceed the annual gift tax exclusion per giver, which is currently $15k at the federal level in the US. If the gift were particularly large and did exceed this, the excess should go against your lifetime exemption. Your accountant can provide details on how this works, and help you with any forms that you'd need to fill out.
Re: Server Coffer
Interesting. I don't speak legalese which is kind of why I petered out of this conversation at viewtopic.php?p=79023#p79022
Also yes, I'm assuming most donations are like $5-$20...if someone does decide to send $15, 001 through an NFo coffer that's something else
Also yes, I'm assuming most donations are like $5-$20...if someone does decide to send $15, 001 through an NFo coffer that's something else
Re: Server Coffer
Thanks for the explanation, appreciate the response.