Odd angle here, but I'm genuinely curious - what are Carson's tax implications after all this is done? He's been gifted $80,000+. Does he have to claim that as income? Then, claim the charitable deduction after he donates it?
Also, the level of this donation is easily up to a point he could have naming rights to something in the hospital. CyHawk Children's Lounge, etc.
Also, the level of this donation is easily up to a point he could have naming rights to something in the hospital. CyHawk Children's Lounge, etc.
Murph just updated and said it's up to $100k in his Venmo, $300k with the matching contributions.
I wondered this today, too. My guess is that he would have to claim it, but then it would be cancelled out (minus the money he kept to buy a case of Busch Light) by the charitable donation.
The Wave has definitely created awareness. It's not directly providing money, but the hospital has gained a lot of mainstream, national recognition because of it. Hell, who knows if he donates to the hospital without that awareness? Not saying he wouldn't have donated to charity either way, but maybe he would have donated to a different cause/entity.
I don't think the charitable deduction would work like a 1:1 cancel out. I think it's like 60% of your adjusted gross income.
I can attest to Iowa State kids going though those doors. My 5 month old daughter has cystic fibrosis and we visit the children's hospital once a month. Happy to have them even though I have to look at stupid Herkies every where!
Also, with Barta trying to make Cyclone fans look bad, it was perfect time for one of our "bad" fans to make headlines for doing something good for his school.
Also, with Barta trying to make Cyclone fans look bad, it was perfect time for one of our "bad" fans to make headlines for doing something good for his school.
I'm pretty sure gifts do not count as income.. I believe the main situation would be if the giver gave more than 15k, in which case that's on the giver to pay tax, not the receiver.
My sister texted me yesterday and asked me that too. I can honestly say i don't know because I am not sure how Venmo works as I've never dealt with it.
Usually these types of transactions are considered gifts. It all depends on it Venmo issues a 1099K to the individual receiving the donations.
Based on the following: "A TPSO is only required to file a form 1099-K when reporting payments to a participating payee or provider of goods and services vendor. If a contractor exceeds 200 transactions or $20,000 of sales during the course of the year TPSO’s are required to report the gross payments before any processing or merchant fees are applied to the IRS."
I would assume he will receive a 1099K and have to report it on his taxes.
He of course would be able to claim a charitable contribution for the amount donated to the hospital, but that is a itemized deduction and is limited to 50% of his AGI.
This is my understanding as well after some research. Basically, there's a good chance this kid gets a tax bill at the end.
Yeah he may want to hold some of that to cover his taxes.
Per my research it appears Venmo has to file a 1099K if there are more than 200 tranactions or more than $20,000 to a payee. So as I pointed out above he will most likely receive a 1099K from Venmo and have to claim it on taxes.
I wonder if he could just sign over the Venmo account & it'd be as if he never accepted the payment?
I find it slightly amusing that one Cyclone fan is going to be responsible for giving more to the UI Children's Hospital than ANF actually has generated for farmers. Not that I know the ANF numbers, but as far as I know, it's more about "awareness" than giving back. I do wish that Carson would have given half of that to Blank, which is also a really good children's hospital in DSM.
I wonder if he could just transfer ownership of the account to the hospital - and if he never actually takes possession of the $$ if he could avoid the taxes. Hopefully a good tax attorney that is knowledgeable on this will provide him some good (free) advice. (ianoconnor beat me to this by a couple minutes)
I wonder why it doesn't just stop at these being considered gifts? Gifts aren't taxable income to the recipient.
