"As long as the contributions to Brian are deemed gifts by both parties and the amount of the contribution is below $11,000, then there are not any income tax ramifications to either party. (ie. Brian is in the clear and does not need to claim this income. However, there are ways for him to claim the loss to offset his other income.)" The gift exclusion is now $12,000 (and that's per year, which I'm sure you meant to say). Sadly, I don't think that this limit will come into play. However, I wouldn't bet against the IRS classifying this as payments for services, especially if brewerfan.net is run as a business. If brewerfan.net does not operate as a business, and does not make a profit, then hobby loss rules come into play, making it very difficult to claim the loss to offset other income. Just my CPA two cents worth.