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Old 11-23-2012, 10:54 AM   #24
LOCOChief LOCOChief is offline
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Join Date: Nov 2006
Location: Bull Bay
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Quote:
Originally Posted by Shox View Post
I'm a CPA and even if an endeavor is done for hobby purposes and the income is taxable, expense are an itemized deduction......this is the worst possible situation.

I think it could make an argument it is a gift and not taxable.

On the other hand the IRS could argue the money is taxable income or the service of communicating the views of chiefs fans to Clark and Chiefs management. But, the costs incurred would be deductible. Assuming you spend all or the majority of the funds on legit business expenses (i.e. banners ect) you would have no taxable income and accordingly no income tax liability.

I think I would just report the income and deduct the expenses.
there's the answer. And I thought this was the "worst possible situation" as well.
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