Receiving cash donations

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  • cathe
    Member
    • Jan 2007
    • 71

    #1

    Receiving cash donations

    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
    Senior Member
    • Dec 2009
    • 374

    #2
    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

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    • cathe
      Member
      • Jan 2007
      • 71

      #3
      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

      Comment

      • BP.
        Senior Member
        • Oct 2005
        • 1750

        #4
        Originally posted by cathe

        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?

        Comment

        • cathe
          Member
          • Jan 2007
          • 71

          #5
          Absolutely!

          Absolutely! Thanks all!

          Cathe

          Comment

          • gkaiseril
            Senior Member
            • Feb 2007
            • 567

            #6
            Originally posted by Dusty2004
            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.

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