41

I am Swiss but I will attempt to answer this as good as possible: 1 Storage You get a bank account. Done. A bank account doesn't get you a lot of interest, but it is a safe way of storing the money and you'll have access to it at any time. 2 Bureaucracy Germany is a little more bureaucratic than Switzerland but a simple bank transaction should be enough. ...


31

It is not wise. I think that if your charity gets $1M/month (or even $100K/month) in donations, it would be prudent to have a (good) accountant oversee your operations, and use a proper FDIC-insured banking system. I'm aware of a company who was using PayPal for retail sales and got stuck with hundreds of thousands of dollars on their PayPal account and ...


28

To the best of my understanding, the CPA is wrong. You can only deduct the contributions in the year you made them. From the IRC Sec 170: There shall be allowed as a deduction any charitable contribution (as defined in subsection (c)) payment of which is made within the taxable year. A charitable contribution shall be allowable as a deduction only ...


28

IRS Pub 561 says you have to use fair market value. You cannot simply use a depreciated value. You should attempt to determine what people normally pay for comparable items, and be prepared to defend your determination with evidence in the event of an audit.


20

In the United States investing towards donation is a great idea because you can donate appreciated securities directly rather than donating cash. Notice how much this can benefit you: You invest $10000 for 1000 shares of XYZ company (which, for the sake of this example, does not pay dividents to shareholders). Two years later the market price of your ...


16

The usual lazy recommendation: See what similar objects, in similar condition, of similar age, have sold for recently on eBay. That establishes a fair market value by directly polling the market.


14

Yes, Paypal has such a button you can use, but to be clear, the money you receive is taxable income. Your website is providing 'value' to the readers, and while they may feel they are making a gift to you, it's earned income as far as the IRS is concerned. (This assumes you are in the US, you may wish to add a tag to indicate your country)


13

Do I report it as income? Is it subject to just the same amount of taxes (~30%) as regular income? Are there any restrictions on how it can be used? It is income. You can deduct the costs of maintaining the web page and producing the software from it (have an accountant do that for you, there are strict rules on how to do that, and you can only deduct ...


13

You can't take deductions made in one year and apply them to a different year. I find it odd that your CPA would suggest otherwise. What you can do is file an amended return for the year that the deduction should have taken place (2013, in your case) which includes the deduction. The form for that is 1040X. These forms don't go through the usual automatic ...


12

Technically, this is considered "income" for you, and is actually not considered a "donation" for your donors, but is instead a "gift" (not tax-deductible for your donors). So, you are technically required to report it, and there is a pretty significant audit trail that can be followed to prove you made that money. I don't know if PayPal is required to file ...


12

If I don't have other things but donations to itemize, does "but that only makes financial sense if they exceed the IRS standard deduction amount, which is $6,200 for individuals" mean that the total value of my donations must exceed $6200 before it can be used to offset my tax? Yes. You get to deduct the larger of either your itemized deductions or your ...


11

$0.00. If audited, you'll have to show an itemized list of donated items, and the value for each based on their sale price in that thrift shop. You should always keep a list of what you donate, the donation centres don't have the time or capacity to write and evaluate every single piece of old clothes that everyone donates, they just take the bags and that'...


10

It is correct, in general. Gift tax is indeed at 35%, but you have the first 14K of your gift exempt from it for each person you give to, yearly (verify the number, it changes every year). You can also use your lifetime exemption ($5.45M in 2016, subject to change each year), but at the amounts you're talking about it still will not be enough. Charitable (...


10

Essentially, the idea behind the standard deduction is this: The tax code assumes that everyone has some deductible expenses: charitable contributions, taxes, etc. Rather than force lower income tax payers to keep track of everything, they can take the standard deduction, which is just an amount that it is assumed you have in deductible expenses. If you ...


9

If you're not a recognized non-profit organization then your income is taxable as earned income, or hobby income, depending on the circumstances. Some would say it may be classified as a "gift", but I would argue that to be a dangerous proposition, and would advise against it.


9

Charitable donations require a lot of record keeping. If you don't have those records, you don't have a write off. Unless that bag of clothes raises your donation levels to the point of a write off, I wouldn't worry about counting it. From the H&R Block Site on Charitable Donations Record Keeping Requirements Noncash donations of less than $250 ...


9

Its is considered a "hobby" income, and you should be reporting it on the 1040 as taxable income. The expenses (what you pay) are hobby expenses, and you report them on Schedule A (if you itemize). You can only deduct the hobby expenses to the extent of your hobby income, and they're subject to the 2% AGI threshold.


8

I'm not a tax professional, and this is something you should get a professional advice on. But having said that, I think you answered your own question. It is explained in that Forbes article, that the donated value is in fact the value of the house you're going to demolish. So in fact you didn't donate anything but rather got help in demolishing a ...


8

Sorry; you'll need to contact each organization and provide new credit card information. (Ideally, you should have done this before canceling your card.) Unfortunately, there's no easy or "bulk" way to do what you seek, unless you used a single intermediary (e.g. PayPal) in the first place – and that's not an approach I would recommend due to fees ...


8

Depending on what your other deductions are and the amount you are wanting to donate, you can save some money by "batching" deductions into every other year. For example, if you are single in 2015, the standard deduction is $6,300. This means the first $6,300 in deductions you have basically don't "matter" because the standard deduction is larger. You only "...


8

The IRS doesn't care about purchase price of donated items, it's all about fair market value (FMV) at time of donation. Generally, if the value is over $5,000 you'll need an appraisal, if not, you can determine FMV yourself, using the guidelines set forth in IRS Publication 561 The IRS defines Fair market value as: Fair market value (FMV) is the price ...


7

At least on 25K. Here's the actual IRS publication, it's fairly complex and the limits depend on the types of organization you're donating to, and the types of property you're donating. Some donations may be limited to the maximum of 20% of your AGI. Bottom line - the maximum you can deduct in almost all circumstances would be 50% of the AGI (very few ...


7

From the IRS publication 561: Deduction over $500 for certain clothing or household items. You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500. See Household Goods ...


7

Insurance is mostly for covering against catastrophic events, it's not something that must be helpful to you every day. Sounds like you health is okay and you don't mind paying some cash in case of minor events. You could try to find a policy where coverage kicks in only once an incident is big enough (high deductible) - in such cases you payments will be ...


7

You cannot carry forward deductions you forgot in a prior tax year; but you can carryover deductions that exceeded your maximum deduction limit. As in Publication 17/2014/Chp. 24: You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained later under Carryovers ). This ...


7

You can view the donations as helping to pay for your time spent on development, so I don't think there's any moral or legal issue with asking for them. However you will need to pay tax on them as income, which may involve registering with HMRC as self-employed. They also won't be tax-deductible for the donors or eligible for gift aid, as you aren't a ...


7

The thing to look at is PayPal's "PayPal.me" service, which is a pretty neat little item. When you sign up for a PayPal.me account (totally free), you create a unique username. So for example, my PayPal.me account name is DanCAnderson. I can give someone the following web link to send me $500: http://paypal.me/DanCAnderson/500 If you click the link ...


6

Is it a tube television, digital, analog, what? Tube televisions are no longer made in (or imported to) the U.S., and if it's an analog set then it would require a digital converter just for anyone to use it for watching broadcast signals, since analog television signals are gone and have been replaced by DTV. That makes all the difference in the world as ...


6

No, you don't need a professional tax preparer to handle such a donation. TurboTax can handle this just fine. One cutoff you should be aware of (and TurboTax, etc. would tell you this) is if you donate more than $5,000 in non-cash donations (of a given type), you would need a qualified appraisal per the instructions for form 8283 (assuming you're itemizing ...


5

The total outlay in 1. is $15552 and in 2. is $15560, so if you had the $4000 (and ignoring forgone interest which is very low at the moment), then you'd only need $8 of savings from the tax deduction for it to be worthwhile - I suspect they set it up so that the numbers would be the same modulo rounding errors. From your stats you probably don't have the $...


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