Paysite-cash blog: secure payment solution for e-commerce sites
My home was recently lost in the KY tornadoes. I have been very thankful to the people around me. My question is what do I do about the donations I’ve received?
It is close to 9-10k and may be more. What tax implications does this have?
You don’t have to pay tax on gifts given to you.
There is actually a threshold for gifts above which donations are taxable. It operates in lifetime basis and is mainly used for inheritances. In Europe this is 750k euros I would expect US to have a similar amount. Basically all gifts/donations are not taxable until they reach a total sum of the threshold at which point they are taxable at standard rate(lower bracket income tax rate). I am sorry this happened to you and hope that you pull through.
Shouldn’t have to pay tax on gifts. Also make sure you file a home insurance claim.
Do not just go with whatever construction comp your ins suggests. Look at their yelp, bbb, and Google reviews. Keep in mind GC’s also use sub contractors so look at those reviews too.
Good luck!
No tax since it’s gifts, call your home owner’s insurance and file a claim. But after disasters, scam artists are always out in full force. So be careful!
You owe no taxes, don’t sweat it.
If any given person gives you less than $15,000/year not only are there no taxes, but they don’t even have to report it to the IRS. If someone gives you more than $15,000/year they have to report it to the IRS, but they still don’t let taxes until they hit their lifetime limit which is currently $11.7 million.
And those taxes are always paid by the gifter, not the giftee, so even if you were gifted a billion dollars the taxes still wouldn’t be your problem.
A bit of advice – if anyone comes to your house offering to rebuild it assume its a scam. Living in Florida we have seen a lot of people get taken advantage of after a storm.
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