Anti-Trump texter Peter Strzok has racked up more than $422,000 in GoFundMe donations since his FBI firing, but the IRS could tax the cash if he cannot prove it poured in out of "pure generosity," The Weekly Standard reported.
The crowdfunding page was created in Strzok's name Monday to defray "legal costs and lost income," but quickly met its initial goal of $150,000, pushing up the ante to $500,000, the conservative outlet reported.
The tax bill could be over 35 percent because the IRS generally counts GoFundMe donations as net income on a person's tax returns — but the rules are fuzzy, tax lawyer Joshua Wu told the outlet.
"Generally speaking, the way the law works is income from whatever source derived is considered taxable income," he said, adding "in instances where people are raising money for charitable purposes through an exempt organization, that can be tax free to the recipient."
"[O]n the other hand, for people who are raising money for building a new product, or starting a business, or funding some kind of personal endeavor, the general principle is that is taxable," he said.
But, Wu pointed out, if the donations are designated as a gift of "pure generosity," Strzok may be able to pocket the balance.
There is another complication, Wu said; Strzok would have to be able to demonstrate those anonymous donors truly donated out of purely "detached generosity."
"It's a gray area, because what the IRS guidance says is, 'look, if it's detached generosity, no quid pro quo, it can be a non-taxable gift,'" Wu told the outlet.
"But the guidance specifically says a voluntary transfer without a quid pro quo is not necessarily a gift. In other words, it's still taxable. So, that's why what we're looking at here sounds like it falls right in that central lane."
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