Receiving cash donations

[cathe]

I have a heads-up for next years return. Clients house burned to the ground, community pitched in and donationed items and cash. Since they are not a charitable organization, I report total value and cash as "other income". Just seems right, can't find anything on IRS website that talks about this type of situation.

Am I missing something?

Cathe

[Dusty2004]

I think it would just be gifts.

The donors are getting no tax deduction for this so I do not think this would be income to the recipient.

Dusty

[cathe]

Ooh!

OOH! I like that thought. Hadn't gone there in my mind. It is so different looking at it from this side of the fence.

Cathe

[BP.]

can't find anything on IRS website that talks about this type of situation.

How about pub 17, p. 94- "property you receive as a gift is not included in your income." Seems treatable as a gift, don't you think?

[cathe]

Absolutely!

Absolutely! Thanks all!

Cathe

[gkaiseril]

The donors are getting no tax deduction for this so I do not think this would be income to the recipient.

Dusty

Unless there has been a 503(c) trust setup and giving receipts with an EIN on the receipt, that would be a very doubtful deduction.

I would think the items received are more along the lines of a gift in terms of the IRS regs.