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Tax on server donations?
sarcastic_ninja
DAP
Can a mod please lock this?
I've read that if people donate on your server it is considered a gift and cannot be taxed on. But I want to give perks in-game in return for the donations, and that is considered income. I'm a minor living with my parents by the way. I want to use Buycraft, a pay-pal account (I think not quite sure) connected to my moms credit card (she's ok with it). My questions are Does Buycraft or PayPal pay tax automatically? Do they still have to pay tax on the "income"? What else should I know? Thanks!
I've read that if people donate on your server it is considered a gift and cannot be taxed on. But I want to give perks in-game in return for the donations, and that is considered income. I'm a minor living with my parents by the way. I want to use Buycraft, a pay-pal account (I think not quite sure) connected to my moms credit card (she's ok with it). My questions are Does Buycraft or PayPal pay tax automatically? Do they still have to pay tax on the "income"? What else should I know? Thanks!
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User requested a lock. So, locked. (and no, gifts do not receive taxes. But make sure they pick "gift" as they payment option, or else there will be a tax that they will choose to probably send to you.)
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Paypal donations do in a way tax you, since they do take a small percentile portion of the money/
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He's asking about legal tax. PayPal isn't a government, you aren't paying tax even if they do take money off of you. That's just a usage charge.
Ask an accountant. You're wasting your time by asking here as you're just going to get conflicting/useless information.
-P
Ask an accountant. You're wasting your time by asking here as you're just going to get conflicting/useless information.
-P
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I am perfectly aware paypal isn't a goverment. By tax, I meant percentile fee.
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Donations aren't taxable and even if they were the taxes would go to the government, not you. So people are giving you a monetary gift in return for perks. There's no taxation since it's not really a legitimate business.
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Think of it like this "you get 100 bucks from grandma then you go and give her flowers IS THE GOVERMENT GONNA TAX YOU SINCE YOU GAVE HER 5 DAISIES.
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No but I plan on getting more than 5 daisies and hopefully more than $100 (I'll need $144 to break even)
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All of the above are incorrect. PayPal does not care how you phrase your income. If you are receiving money, it is considered income. Once you are above a certain thresh hold you will be required to submit tax information (20,000 dollars in income, and 200 transactions). You WILL know once you are required to submit your taxes because paypal will keep bugging you about it.
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As long as it is phrased as a donation, you do not get taxed. Now, any other way that it is phrased, you will probably get taxed.
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It's a donation and you're giving them perks, so it isn't a sale and there is no tax. Donations are money gifts, not payment, legally.
I should clarify since I didn't the first time. Blox is correct. Neither you or people who donate have to pay tax. You only have to submit your taxes once your income reaches a certain point and I'd imagine this depends on what country you live in as well.
I should clarify since I didn't the first time. Blox is correct. Neither you or people who donate have to pay tax. You only have to submit your taxes once your income reaches a certain point and I'd imagine this depends on what country you live in as well.
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I am an experienced Buycraft user. Buycraft takes 9% of everything that you earn.
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buycraft can't take money from you because its for the server or something i used buycraft since it came out and never took money from me
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However if you are getting donations over a set amount i believe in some countries you are required to pay some tax on it... but that's like after 10,000+ i believe. Also after having money sitting in paypal over a select amount paypal may get you to variety your account to prove you are not laundering money.
You should be fine using buycraft and paypal for servers unless you all of a sudden get 1000s of dollars daily
You should be fine using buycraft and paypal for servers unless you all of a sudden get 1000s of dollars daily
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Aren't you just giving a "gift" in return for a "donation"?
