Salon Owner Accused of ‘Set-Up’ by Pelosi Raises $300K to Relocate
9th September 2020
The salon owner accused of “setting up” House Speaker Nancy Pelosi, D-Calif., is thanking supporters who have contributed $300,000 to a crowdfunding account set up to help move her business after she received threats.
Plenty of room in Texas. You could go to Austin; it would feel like you never left California.
September 9th, 2020 at 11:22
Out of curiosity, how is this sort of money taxed?
September 9th, 2020 at 16:12
As donations, which I believe are considered ordinary income. The rule is that any income is taxed unless there’s a specific tax code provision saying it gets different treatment. A great ‘how to get rich’ book, the name of which I can’t recall, said ‘Look at the tax code, where the government has given you a list of things that aren’t taxed or taxed less, and go do that’. (It might have been one of Scott Adams’ books, it sounds like something he’d say.)
September 10th, 2020 at 11:55
Here was my thought: I can give you up to $5k without reporting the transaction and without tax consequences.
So if a 1000 people give $300 each, would that still stay off the radar?
Potentially, 1000 people gave $200 each and one guy gave $100,000. So would there have to be documentation to limit the tax?
I’m probably overthinking this; If the IRS has a way to get to the cash, they’ll take it.
September 10th, 2020 at 14:28
It depends on how it’s collected. You can bet that Patreon and GoFundMe report the money to the IRS as donations. If, however, one were to put up a web site saying ‘Hey, send me a check’, that would be a gift and not taxable (or reportable, although you’d better keep records for when the IRS comes auditing, as they have an inconvenient habit of doing when people live above their obvious income). I send Ned May at Gates of Vienna money every month with “GIFT” written on the check; how he handles it I don’t know.