A client lost her small business to a file. Friends of hers started a Go Fund Me account to her rebuild her business. The money will be used for equipment, paying employees, and making product. Will any of the go fund me money be taxable? I realize. the limit for one gift is $17,000, but what if all gifts were below that limit.
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Part of the definition of a gift is "no strings attached" to use a colloquialism. Can she use the money to go on a vacation and never re-open the business? Would the money have been transferred if the donors didn't expect it to be used for the business? If the answer to those questions is "yes", then I'd say it's a gift, but it certainly doesn't sound like the situation you describe.
"the limit for one gift is $17,000,"
There is no limit for a gift. The amount of money transferred has no bearing on whether or not it is a gift."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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