If someone gives you a donation say for a legal fund is this considered income even though it was all used for the legal fund?
If someone gives you a gift, then as a gift, you as the receiver do not pay tax on it. If the gift is over $14K then the giver may need to report the gift and potentially pay tax on the gift unless they use their 5.45 Million dollar lifetime exemption. If the gift is more than 14K than the giver will need to file a return but may noto be required to pay tax on the gift.
If someone gifts you a certain amount of money the gift is not income to you. However, if you are receiving large amounts of money as gifts I recommend that you document all of this, Should the IRS audit you all they will see are large amounts of money in your account. The fact that you used the money for legal fees is not relevant. You need to show that they monies were in fact gifted to you and not earned by you.
The information provided by the Law Office of Magda Abdo-Gomez on this web site is intended solely for informational purposes. Any information on this site is general in nature, and since the law is always evolving, may not reflect current legal developments or the current state of the law on the particular topic. None of the information provided on this website should be considered professional legal advice nor should it be relied or acted upon in any way without consulting qualified legal counsel. Neither transmission, nor receipt, nor use of the information on this site constitutes or creates an attorney-client relationship, nor is the information provided on this site an invitation to form an attorney-client relationship. The Law Office of Magda Abdo-Gomez encourages you to contact the office if you require legal counsel, however, none of the information you communicate to us by e-mail or in any other manner will be assured of confidential treatment until the Law Office of Magda Abdo Gomez acknowledges and agrees that an attorney-client relationship has been created. In fact, until such a relationship is established, we will assume that any information you send us is not confidential and that we may represent parties with interests which may be adverse to yours. Magda Abdo-Gomez is licensed only in the state of Florida. However, bankruptcy and tax laws are federal in nature.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline