Here is a link to a very interesting article on how Indiegogo affects the taxes of those who receive donations.
Here is an excerpt from the article/blog post:
In the eyes of the Internal Revenue Service, that’s income. Taxable income. Oh, you didn’t know that? Yes, it’s true. If you receive money via crowd-funding – be it Kickstarter or IndieGoGo – you have to report that as income on your taxes.
The IRS wants their share of that income, and it could cost you if you don’t have any way to account for your production expenses.
In my case, I could have lost hundreds of dollars worth of my tax refund because of this crowd-sourced income.
Fortunately, it didn’t even put a dent in my refund. Why? I kept all my receipts, and I categorized each one to account for every penny of where that $2,288 worth of funds went.
Here’s what I did: I carefully documented every receipt, every category I spent money on to make the project happen.
Wardrobe purchases? Deduction. Props and set decoration? Deduction! Craft services, catering, equipment, location fees, production insurance, crew member pay? Deducted, deducted, deducted.
The person who wrote this was able to avoid having their refund taken by keeping detailed records and all of their receipts. I wonder if YouTube's #1 con man and coon Tommy Sotomayor kept all of his receipts?
No comments:
Post a Comment