Legal Question in Tax Law in California

Avoidance of taxable income by pre-earning direction of payment as a donation?
There is a professor in my College who earns money from training he conducts on the side. He would like these monies to go to the College as separate donations without having it count as his own personal income which he then turns around and contributes. I understand that if the professor has done everything necessary to receive the payment and has the right to direct where it can go, that it is income. The professor recently heard that if he directs where the money is to go BEFORE it is earned, that the IRS will recognize it as being nontaxable as income. Is this correct? Where can I go to learn more about this specific ruling -- or to ensure it is not true?

Asked on 9/23/99, 8:45 pm

MYRON LEWIS MYRON LEWIS

0 users found helpful

0 attorneys agreed

Re: Avoidance of taxable income by pre-earning direction of payment as a donatio

I don't think the Prof. is correct. If you earn it, you pick it up as income! Look out for the Form 1099 he will receive from the Charity, too!!

Good luck!! and be careful out there!!!

Answered on 9/27/99, 12:31 pm

Keywords

Match Any Match All

Country

State

Area of Law