Paying taxes on donations?

[Deleted member 49793]

Wondering if anyone here has ever actually paid tax on donations to your server… Or how did you avoid the risk? In other words. If you were to be audited tomorrow how would you avoid getting raped by the government for not paying tax on what your server brought in?

 

[Ethrex]

Each country got their own laws and such about donations, normally there is a max limit / donation before you have to pay tax, remember DONATIONS not buying items and stuff...

 

[Deleted member 49793]

Each country got their own laws and such about donations, normally there is a max limit / donation before you have to pay tax, remember DONATIONS not buying items and stuff...

Thanks, More feedback welcome please!

 

[TibiaFX]

Wrong channel sorry "Edited"

 

[Codex NG]

In the usa paying taxes on income differs depending on if the money goes towards a corporation or an individual, each category has it's own laws and sub-categories

tax classifications for common business activities
http://dor.wa.gov/content/fileandpaytaxes/beforeifile/doingbus_commonbusactivities.aspx

I am no accountant, but if we're providing virtual goods as a corporation then we fall under this rule(s)/laws(s)
http://apps.leg.wa.gov/RCW/default.aspx?cite=82.04.215

You can read more about the types of taxation classes by reviewing the links on the left of this page
http://www.irs.gov/Filing