STATE: Pennsylvania
Hi there,
I run a free website, we accept "donations" to keep the website running.
We do not charge for a service but if people donate they get special perks for donating (like special avatars etc.)
We are a new company and we are not registered as non-profit.
My question is, what are these donations considered? I looked at some
of the forms and all I see is "sales." would the entire donation be taxable?
Or is it considered a gift ? If so, what portion is taxable if any?
I want to make sure we're paying the right amount of taxes.
I would appreciate any help you could give, If I haven't supplied enough info for you to be able to give advice, please let me know as well.
Hi there,
I run a free website, we accept "donations" to keep the website running.
We do not charge for a service but if people donate they get special perks for donating (like special avatars etc.)
We are a new company and we are not registered as non-profit.
My question is, what are these donations considered? I looked at some
of the forms and all I see is "sales." would the entire donation be taxable?
Or is it considered a gift ? If so, what portion is taxable if any?
I want to make sure we're paying the right amount of taxes.
I would appreciate any help you could give, If I haven't supplied enough info for you to be able to give advice, please let me know as well.