This is repeated over and over but without foundation.
It will be a bank to bank transfer and the source of the money is traceable and has an audit trail via gofundme. All payments are via credit or debit cards.
Tax? The money is legally gifts. And not in return for any service. Therefore it woukd not be taxable under any European or us legalisation.
I am not impugning Ms Baulch's integrity ... nor am I questioning the traceability of the donations ... I have stated that according to the web-site the money is paid into her bank account and while there is technically hers.
If it is to be considered as a gift when transferred I think the necessary steps would have to have been taken beforehand to ensure there will be no liability, JP.
For example, the fundraiser in the USA who found herself liable for tax did not do this and was hit for a whopping great bill because it was classed as taxable income.
**snip
The good news for Kate is that I think I found a reasonable solution that she and others could use to minimize or eliminate their tax liability.
Until the IRS provides clear guidance on the tax liability for being a good samaritan and raising funds for someone in need using crowdfunding, the best thing for someone to do is not put the crowdfunding account in their name and instead register it in the name and tax identification number of the person receiving the funds.
Alternatively, you can try to say the funds raised fall under a gift exemption or try to subtract out the donations on your tax return like this. That's a tactic you'd have to see if the IRS would accept and you should absolutely discuss this with your qualified tax preparer.
http://www.huffingtonpost.com/steve-rhode/crowdfunding-to-help-a-sick-friend-can-lead-to-a-big-tax-bill-for-you_b_6615616.html
