Nick, Then I don't understand. Why would OneForty elect to pay the developer's 70% in the form of a gift or donation to the developer?
Dewald On Sep 28, 8:34 pm, Nick Arnett <nick.arn...@gmail.com> wrote: > Not sure how it works in other countries, but in the U.S. revenue is revenue > is revenue; most gifts are income to the person who receives them. Even if > you are a non-profit, if you're making a profit from a substantial part of > your operations, you can end up owing taxes on it, even if you call the > income a gift. Otherwise, everybody would call everything a gift and nobody > would pay taxes! > > The fundamental rule is that when the "gift" is actually in exchange for > something of value, it is income to the receiver and not deductible as a > donation to the giver. > > Nick
