MrBeast reveals tricky tax situation after giving away millions of dollars
YouTubeJimmy ‘MrBeast‘ Donaldson is known to give out large amounts of money to random people, but this comes with a toll when he files his taxes each year.
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If you’re a small Twitch streamer and you’ve ever seen MrBeast’s name pop up in your channel, you know you’re in for a good time.
MrBeast is known for donating large sums of money to various streamers, the amounts of which can reach upwards of tens of thousands of dollars. As MrBeast has recently discovered, this creates a problem when tax time rolls around.
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MrBeast has a lot to deal with when it comes to taxes
In a recent episode of the H3 Podcast, MrBeast was a guest and he touched on his complicated tax situation due to his constant charitable efforts.
“The hard part is when I give my boys $100K to spend, who pays taxes on it?” MrBeast asks. “Them? They can’t taxes on it so I guess I have to pay taxes on it.”
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He brings up an interesting point about game shows requiring winners of cars or vacations to pay taxes on the prize, which he guesses leads people to not accept the prizes at all.
MrBeast says he spent $500K last year on videos which will no doubt be messy when he goes to file them this year.
2018 represents the most money MrBeast has ever spent in a year.Are MrBeast’s donations tax deductible?
When asked if his videos would open him up to a tax deduction since his donations are actually expenses, MrBeast didn’t sound so sure if that was the case.
“I’m pretty sure someone has to pay,” he said. “We’re going to find out.”
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He also mentions that even if someone gets gifted something like a car, they will still have to pay taxes on it, despite not buying it themselves. He shared an example of buying a car for one of his friends, which also echoes back to winning a car from a game show.
“I buy him a car and then it’s like pay $8,000 on this car I gave you when they don’t have $8,000,” he said. “That’s the dilemma so I have to take it upon myself.”
