2016 Postmortem
Related: About this forumShould Bernie and Trump have the $10-15 million for the debate be reported as taxable income?
The networks are not just donating the money to charity. Rather, both Bernie and Donald Trump are very expressly demanding that this amount get paid as a condition for them to debate on a network. The charities are being chosen by Bernie/Trump, i.e., for women's health issues. Also, both Bernie/Trump are claiming credit for such donations.
How does this not count as income to both Bernie/Trump? Sure, they could deduct some of the money paid, since it is being given to charity, but it sounds like income nonetheless.
Ilsa
(61,695 posts)Counted towards income.
TomCADem
(17,387 posts)...they have cable bid for the rights to televise the fight, and HBO bids $100 million split evenly. Mayweather directs that his $50 million be paid to a charity of his choice. How much does Mayweather report as income? How much could Mayweather claim as a deduction?
https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions
You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.
So, I don't think reportable income is based on the net amount of money that Trump/Sanders keep after making their charitable donation. Rather, their income is the $10/15 million, but they can then deduct the amounts that they contribute to charity.
Sheepshank
(12,504 posts)TomCADem
(17,387 posts)for a debate, then doesn't that count as income? Also, if they then donate that money to a charity. isn't it there tax write off?
I am not hearing anyone offer any explanation as to why this is no different then paying the money to Trump/Bernie who then turn around and donate it for a big tax write off.
Response to TomCADem (Original post)
Post removed