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Old 09-06-2007, 03:32 PM   #4
the_logos
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Join Date: Sep 2002
Location: Mill Valley, California
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Re: Donations, MUDs, and taxes

Keep in mind that you cannot donate money to a MUD. You can donate to a person or other legal entity only. MUDs don't have income. Companies and people do, so giving a couple thousand to person A is just giving a couple thousand to person A, regardless of what person A chooses to spend it on. The I.R.S. will (though I'm not an accountant) just see it as a gift of $2000, taxable as any other gift is taxed on the recipient, and not deductible from the giftor's end.

--matt
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