Noah J Nelson on Thursday, Sep. 19th
Indiewire's Paula Bernstein takes a look at "The Future of Crowdfunding (and the Tax Implications)" today. This quote from Cameron Keng founder of AutoTax.me is key:
"The problem with Kickstarter and most platforms is that there's a lot of confusion with the language. They use the word 'donation,' but it's not a donation. It's income. The IRS has a simple rule — unless you prove it's not income, it's income. What it comes down to people have to understand if you get a donation, that's income and you're going to pay tax on it," said Keng.
While there is some talk in the piece from Slated's Colin Brown about the danger of "crowdfunding fatigue" there's also these numbers out on Kickstarter's revamped start page to put things into perspective:
- 4.8 million people have backed a Kickstarter project
- 1.4 million people have backed more than one project
- 144 thousand people have backed ten or more projects
This from the most widely known crowdfunding platform. Consider that the population of Los Angeles County is 9.9 million people. Fatigue is definitely in the eye of the beholder.
Follow Noah Nelson on Twitter (@noahjnelson)