curiousm asked:


There will be a fundraising event w artworks donated by the artists (USA) in abraod. The event will generate donations (foreign) through donations (USA) for a future nonprofit arts org. Do I have to report this income to IRS and pay tax? If so, how much will it be? Thanks.

fundraising

3 Responses to “taxes on the fundraising income in abroad?”

1. PepsiLime on June 26th, 2009 10:49 pm

   if it’s going to be a future non profits arts org then there should be no income tax. Non-profits do not pay income tax on their income that is related to the non-profit. But hopefully you will have the non-profit in place by year end.

2. airebornguy on June 28th, 2009 11:17 am

   Yes you half to report all income to the IRS or they could come back on you

3. ninasgramma on June 30th, 2009 9:24 pm

   The donations will not be tax-exempt unless the organization receiving the donations is a qualified organization before the donations are received.

   If you accept donations as described, they will be taxable to you and not deductible to any donor.

   Yes, you will have to report this as unearned income. Tax will be up to 38% depending on your tax bracket.