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    Post: company makes payment to individual, must it pay taxes?

    Posted by Will J on 3/28/08

    Situation: there is an online social network that raises
    money from online ads, like the Google AdSense ones. It pays
    its best users 50% of the revenue that comes from those ads;
    this is a commitment stated in the T&C, not just a random
    gift or prize.

    - Will the company have to pay taxes for this payment? Can
    it deduct them? What are the thresholds?

    - And as for the individual, must he/she pay taxes for this
    income? If he/she decides to use it for charity purposes,
    can he/she deduct them?

    This example applies for a US-based, legitimate and audited

    Posts on this thread, including this one
  • company makes payment to individual, must it pay taxes?, 3/28/08, by Will J.

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