Blood donations

[dktax]

Young client (student) donated blood last year to the tune of $6800. Anyone care to share an opinion on whether this should be considered self employment income?

[ChEAr$]

Young client (student) donated blood last year to the tune of $6800. Anyone care to share an opinion on whether this should be considered self employment income?

Darn tootin it's se income. Commercial blood banks should be required to furnish 1099-misc forms.

[Ross]

Sure, slap it on schedule C and deduct all the booze and food he consumed during the year to produce the blood! (Just kidding!).

[dktax]

Thank you for your responses. I do concur. I told the youngster he would owe se tax but I was hoping I was wrong. Some of the SE will be offset by EIC.

[RitaB]

Great

Thank you for your responses. I do concur. I told the youngster he would owe se tax but I was hoping I was wrong. Some of the SE will be offset by EIC.

Well, sure it is. We get to help him.

[dyne]

WHY is this taxable AT ALL? He exchanged his blood for cash.
If the blood bank paid him for the value of his blood, he would have NO gain or profit.
If the blood bank paid him extra for his trouble this excess would be taxable.
Could this be considered to be a Capital GAIN to be reported on schedule D?
If so and the gain is considered to have come from Investment property and be
INVESTMENT INCOME and exceeds $3150 would it disqualify EIC? Probably NOT.
Would the sale of a kidney be taxable?
Or if this is reported on schedule C would he be entitled to a COGS amount for the
value of the blood donated?
Does anyone have any authority regarding this issue?

[ChEAr$]

WHY is this taxable AT ALL? He exchanged his blood for cash.
If the blood bank paid him for the value of his blood, he would have NO gain or profit.
If the blood bank paid him extra for his trouble this excess would be taxable.
Could this be considered to be a Capital GAIN to be reported on schedule D?
If so and the gain is considered to have come from Investment property and be
INVESTMENT INCOME and exceeds $3150 would it disqualify EIC? Probably NOT.
Would the sale of a kidney be taxable?
Or if this is reported on schedule C would he be entitled to a COGS amount for the
value of the blood donated?
Does anyone have any authority regarding this issue?

Simply put, the basis of blood is zero. there have been cases before where the taxpayer had entered a small figure on line 21 reflecting gross received less cost of food.

[Uncle Sam]

THis whole question makes no sense.

If he DONATED blood, first he gets no tax donation decuction.

Second- If he was PAID for it - then he DIDN'T DONATE it.

Third - is your client in the business of donating blood?

[RitaB]

What does blood go for, anyhow?

I assumed if the kid made $6,800 bucks, this activity was frequent, regular, and continuous. What does blood go for? Was the kid donating every time he was eligible?

http://www.journalofaccountancy.com/Issues/2009/Jul/20091639.htm

[oceanlovin'ea]

young client

If he is under 25, he doesn't qualify for EIC unless he has children...guess that could be the case.

This is a very strange topic.

Linda, EA

[RitaB]

Good catch

If he is under 25, he doesn't qualify for EIC unless he has children...guess that could be the case.

This is a very strange topic.

Linda, EA

I didn't think of that. Good point. I kinda think he may be a life-timer, though.

[ChEAr$]

I assumed if the kid made $6,800 bucks, this activity was frequent, regular, and continuous. What does blood go for? Was the kid donating every time he was eligible?

http://www.journalofaccountancy.com/...l/20091639.htm

I'm not sure what blood goes for, but from that large amount, I'm thinking the kid gave multiple times at multiple sites, not informing any of them he was also a donor at another.
Normally a place like that (Telecris?) won't accept blood in less than x number of days since the last "donation".

BLood? been there, done that, but not lately. but never for money.
There are some things I will NOT do for money.

[Bonnie]

Must have been something other than blood, normally no compensation for blood donation and you can only donate every 60 or 90 days I forget which so can't do that many times in one year. No way he made that much for 4-6 blood donations.

[JohnH]

May be a rare blood type, or more likely it's plasma.

Plasma can be extracted a couple of times a week.

[dktax]

Interesting

The kid is 26 so definitely does qualify for EIC. Dad dropped off info so I have not spoken to him directly. May not have the whole story.