Institute of Certified Bookkeepers
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Donations

  • Member in Practice
  • Practice Certificate
  • 2 posts
  • # 117559

Hi,

My client is a sole trader that lost most of his farm in the recent Queensland fires. He has been receiving donations - I know usually if you aren't a charitable foundation it is treated as income. Is there a difference in this situation?

Thanks in advance.

  • Member in Practice
  • Practice Certificate
  • 8 posts
  • # 117567

Hi Kay,

Great question! I would love to know the precise answer.

You will find, I believe, that this is a tax agent question as it relates to assessible income and not something that we can answer without that asisstance. My suggestion would be to separate it from other revenue/drawings - so it is visible - and see if you can get tax agent advice specific to the client. The company structure will impact what they say, as well as the nature, size and reason for the donations.

Have a great week!

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