|
Posted by Stuart Bronstein on February 8, 2008, 12:24 pm
Please log in for more thread options
pleasedontemailme@dot.com wrote:
>
>>There are folks posting software, for which they do not REQUIRE
>>payment for use, but they do leave themselves open to receiving
>>donations.
>
>>I ASSuME that all such donations are taxable as income?
>
> Calling it a donation does not make it so. A donation is a
> non-reciprocal transfer and that is not the case with shareware.
Right. It's similar to restaurant tips. The IRS considers them not to
be gifts, but to be something given in relation to a business
transaction. As such they are taxable.
Stu
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap