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> Feels hella pretentious and weird to set up donations. I'm not sure of your location, but in the US these are not donations but income on which taxes need to

by IncRnd 4y ago

> Feels hella pretentious and weird to set up donations. I'm not sure of your location, but in the US these are not donations but income on which taxes need to be paid.

marginalia_nu 4y ago
Yeah they're not de jure donations, but de facto.
treffer 4y ago
Germany, IANAL but was curious because I've seen it differently here: "donations" that are clearly not tax deductible, the only real test for that wird in some sense. Lawyer Google tells me donations are just money gifts. Some organizations that are approved can hand you a recipe that allows you to tax deduct it. And I think those organizations also don't need to pay taxes on it. TIL. Not sure how well that resonates in Sweden though.
- mysterydip 4y ago
  In the US a 501(c)(3) organization is considered "non-profit" and gifts to them are tax-deductible. I worked at one once and we had a paper we used at stores to pay no sales tax.
  - HeyLaughingBoy 4y ago
    You are correct on both points, but you're drawing a connection where one doesn't necessarily exist. When you donate to 501(c)(3) corporation, you can deduct the donation against your taxes and the organization does not have to pay taxes on your gift. The paper you show the store is either a "tax exempt" certificate or a reseller certificate. In the case of your non-profit, it's probably a tax-exempt certificate, but other types of businesses can avoid paying sales taxes on items they purchase if they are for resale. I know this may seem overly pedantic, but taxes are an area where there is a lot of misinformation online, so I'm trying to help reduce any confusion the post may have cuased.
    - mysterydip 4y ago
      Correct, it was a tax exempt certificate. I wasn't trying to say they were related, but I can see how that would have been implied from the text. Thanks for the clarification!
Aeolun 4y ago
You can set your “company” up as a nonprofit, then they’re donations?
- jjeaff 4y ago
  Yes, but then what you pay yourself out of the organization is taxable income.
- HeyLaughingBoy 4y ago
  Yes, if the IRS agrees that what your company does fits its criteria then they will certify you as a non-profit.
Etheryte 4y ago
I think you might be reading the sentence the wrong way round, to me it sounds like the author talks about others making donations, not him receiving them.
- IncRnd 4y ago
  I think you missed some of his comment. He wrote, "Was likewise surprised to actually get people sending me money." That is him discussing his receipt of monies.
Archelaos 4y ago
Merriam-Webster: Definition of donation : the act or an instance of donating: such as a : the making of a gift especially to a charity or public institution b : a free contribution : gift [1] Source: https://www.merriam-webster.com/dictionary/donation https://www.merriam-webster.com/dictionary/donation
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- HeyLaughingBoy 4y ago
  Pay the tax man Source: IRS

by IncRnd 4y ago

> Feels hella pretentious and weird to set up donations. I'm not sure of your location, but in the US these are not donations but income on which taxes need to be paid.

marginalia_nu 4y ago

Yeah they're not de jure donations, but de facto.

treffer 4y ago

Germany, IANAL but was curious because I've seen it differently here: "donations" that are clearly not tax deductible, the only real test for that wird in some sense. Lawyer Google tells me donations are just money gifts. Some organizations that are approved can hand you a recipe that allows you to tax deduct it. And I think those organizations also don't need to pay taxes on it. TIL. Not sure how well that resonates in Sweden though.

mysterydip 4y ago
In the US a 501(c)(3) organization is considered "non-profit" and gifts to them are tax-deductible. I worked at one once and we had a paper we used at stores to pay no sales tax.
- HeyLaughingBoy 4y ago
  You are correct on both points, but you're drawing a connection where one doesn't necessarily exist. When you donate to 501(c)(3) corporation, you can deduct the donation against your taxes and the organization does not have to pay taxes on your gift. The paper you show the store is either a "tax exempt" certificate or a reseller certificate. In the case of your non-profit, it's probably a tax-exempt certificate, but other types of businesses can avoid paying sales taxes on items they purchase if they are for resale. I know this may seem overly pedantic, but taxes are an area where there is a lot of misinformation online, so I'm trying to help reduce any confusion the post may have cuased.
  - mysterydip 4y ago
    Correct, it was a tax exempt certificate. I wasn't trying to say they were related, but I can see how that would have been implied from the text. Thanks for the clarification!

Aeolun 4y ago

You can set your “company” up as a nonprofit, then they’re donations?

jjeaff 4y ago
Yes, but then what you pay yourself out of the organization is taxable income.
HeyLaughingBoy 4y ago
Yes, if the IRS agrees that what your company does fits its criteria then they will certify you as a non-profit.

Etheryte 4y ago

I think you might be reading the sentence the wrong way round, to me it sounds like the author talks about others making donations, not him receiving them.

IncRnd 4y ago
I think you missed some of his comment. He wrote, "Was likewise surprised to actually get people sending me money." That is him discussing his receipt of monies.

Archelaos 4y ago

Merriam-Webster: Definition of donation : the act or an instance of donating: such as a : the making of a gift especially to a charity or public institution b : a free contribution : gift [1] Source: https://www.merriam-webster.com/dictionary/donation https://www.merriam-webster.com/dictionary/donation

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HeyLaughingBoy 4y ago
Pay the tax man Source: IRS