QUESTION

Can I have all of the proceeds from my music go directly to charity without paying taxes on it myself?

Asked on May 07th, 2012 on Business Law - Ohio
More details to this question:
I have a business in Ohio. I haven''t used it yet. I decided I want to start using it as a record label. I have a sales vendor''s license. I want to put one of my own copyrighted songs on digital download sites like iTunes, Amazon, etc... I want 100% of the proceeds to go directly to the "Center For Missing And Exploited Children." I am planning on using a company called Catapult to submit my song, and they distribute it to the mp3 sites, as well as pay the royalties. I want to advertise my song for at least a month before it comes out on the download sites. I just talked to someone from the IRS, and they said if I use my business name, I''d be responsible for the taxes on the sales, and the money would go to my charity as a "charitible gift." I''m trying to have the money go directly to them, yet still use my business name as a record label. Is this possible? If I make as much money for charity as I''m hoping, I''d never be able to pay the taxes on that income.
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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You can assign the royalties from your work to a charity and have the proceeds paid directly to the charity. Under such circumstances, you do not need to include the royalties in your personal gross income.
Answered on May 08th, 2012 at 10:40 AM

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