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Ken,

... but if an owner uses his/her own bank account to collect money for
a "donation" to GROUPS.IO wouldn't he/she be liable for income taxes
on that money?

This concern was raised in the beta "Pricing Changes" topic. And is a part of my motivation for the "Simplified Donation feature #suggestion":


I'm also not a tax accountant, but I believe that (at least in the U.S.) the answer is no. But (strangely) the giver may be required report it if it exceeds a substantial exclusion per recipient.

For the recipient the concern may be more one of having the operation of the group be construed as a business for tax purposes, requiring a filing as such. I think as long as the donation income represents an insignificant fraction of the group owner's income that would not be a likelihood.

But... With the upcoming per-member charges for groups created on or after Monday the 18th it would be possible for a moderately large group to incur a large enough plan payment that it could be comparable to some people's income, particularly retirees. A group the size of GMF for example would cost upwards of $1,900/yr if created after that date.

But I've never run a sole proprietorship business, so I've no idea what the rules really are.

Shal


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