Crowdfunding Scenarios Explained

If, How, and When to Tax Money from Crowdfunding

Delmar C. Gillette

• Publisher: Morgan James Publishing
• Year: 2018
• Print ISBN:
  9781683508595
• eBook ISBN:
  9781683508601
• Topic: Commerce
• Subtopic: Activité entrepreneuriale

Crowdfunding Scenarios Explained: If, How, and When to Tax Money from Crowdfunding tackles head on the current version of using a "crowd" to raise funds for a charitable project, a business concept, or an idea for a toy or tool or other device. Most taxpayers are not knowledgeable about if or when the proceeds (income) they receive are taxable. Crowdfunding Scenarios Explained is designed to explain how and why they could be taxable, along with presenting several true-to-life illustrations and related concepts.

ENDNOTES

1. 1Armstrong, Casey. “What Is Crowdfunding? - Daily Crowdsource.” Daily Crowdsource. Web. 16 Jan. 2016. <http://dailycrowdsource.com/training/crowdfunding/what-is-crowdfunding>.
2. 2“The History of Crowdfunding.” The History of Crowdfunding. Startups.co. Web. 16 Jan. 2016. <https://www.fundable.com/crowdfunding101/history-of-crowdfunding>.
3. 3Neiss, S., Best, J. W., & Cassady-Dorion, Z. (n.d.). Crowdsourcing versus Crowdfunding: What Is the Difference … Retrieved October 20, 2016, from http://www.dummies.com/personal-finance/investing/crowdfund-investing/crowdsourcing-versus-crowdfunding-what-is-the-difference/
4. 4Kazmark, Justin. “Kickstarter Before Kickstarter.” Kickstarter. Kickstarter Blog, 18 July 2013. Web. 16 Jan. 2016. <https://www.kickstarter.com/blog/kickstarter-before-kickstarter>.
5. 5Ibid.
6. 6ibid.
7. 7Ibid.
8. 8Freedman, David M, and Matthew R Nutting. “A Brief History of Crowdfunding: Including Rewards, Donation, Debt, and Equity Platforms in the USA.” History-of-Crowdfunding.pdf. Financial Poise, 5 Nov. 2015. Web. 16 Jan. 2016. <http://www.freedman-chicago.com/ec4i/History-of-Crowdfunding.pdf>.
9. 9Avampato, Christa. “Angel, VC, Crowdfunding, or Bootstrap?” Triple Pundit People Planet Profit, Triple Pundit, 17 Sept. 2015, http://www.triplepundit.com/2012/09/angel-vc-crowdfunding-bootstrap-funding-model/.
10. 10Armstrong, Casey. “What Is Crowdfunding? - Daily Crowdsource.” Daily Crowdsource. Web. 16 Jan. 2016. <http://dailycrowdsource.com/training/crowdfunding/what-is-crowdfunding>.
11. 11Adams, Susan. “Ten of the Best Businesses to Come Out Of Shark Tank.” Forbes, Forbes Magazine, 18 May 2016, http://www.forbes.com/sites/susanadams/2016/03/18/ten-of-the-best-businesses-to-come-out-of-shark-tank/print/.
12. 12“Choose Your Funding Type: Can I Keep My Money?” Indiegogo Help Center, https://support.indiegogo.com/hc/en-us/articles/205138007-choose-your-funding-type-can-i-keep-my-money-.
13. 13Hurst, Samantha. “Researchers Study Indiegogo’s Flexible or Fixed Crowdfunding - Crowdfund Insider.” Crowdfund Insider ICal, 24 June 2014, https://www.crowdfundinsider.com/2014/06/42609-researchers-study-indiegogos-flexible-or-fixed-crowdfunding/.
14. 14Briggman, Salvador. “What Are the Pros and Cons of Crowdfunding?” Crowdfunding Success Tips What Are the Pros and Cons of Crowdfunding Comments, Crowd Crux, http://www.crowdcrux.com/pros-and-cons-of-crowdfunding/. Blog
15. 15Knipp, Kirsten. “Benefits and Drawbacks of Crowdfunding - The BigCommerce Blog.” The BigCommerce Blog, https://www.bigcommerce.com/blog/benefits-and-drawbacks-of-crowdfunding/. Blog
16. 16“The Pros and Cons of Crowdfunding Your New Business.” Learn Finance Online, http://www.globalfinanceschool.com/blog-post/pros-and-cons-crowdfunding-your-new-business.
17. 17ibid.
18. 18ibid.
19. 19“Royalty Crowdfunding Definition.” EquityNet, https://www.equitynet.com/crowdfunding-terminology/royalty-crowdfunding.
20. 20Salman, SH. “The Global Crowdfunding Industry Raised $34.4 Billion In 2015, And Could Surpass VC In 2016 - Dazeinfo.” Dazeinfo, 12 Jan. 2016, http://dazeinfo.com/2016/01/12/crowdfunding-industry-34-4-billion-surpass-vc-2016/.
21. 21“Crowd Funding Presents a New Area of Tax Planning Expertise.” Crowd Funding Presents a New Area of Tax Planning Expertise. InvestmentNews, 30 Jan. 2013. Web. 16 Jan. 2016. <http://www.investmentnews.com/article/20130130/FREE/130139993/crowdfunding-presents-a-new-area-of-tax-planning-expertise>.
22. 22Long, Thomas M. “Federal Tax Issues Associated with ‘Crowdfunding’.” AccountingWEB, 16 Dec. 2015, http://www.accountingweb.com/tax/individuals/federal-tax-issues-associated-with-crowdfunding.
23. 23Salman. supra.
24. 24Mercado, Darla. “Crowd Funding Presents a New Area of Tax Planning Expertise.” Crowd Funding Presents a New Area of Tax Planning Expertise. InvestmentNews, 30 Jan. 2013. Web. 16 Jan. 2016. <http://www.investmentnews.com/article/20130130/FREE/130139993/crowd-funding-presents-a-new-area-of-tax-planning-expertise>.
25. 25Duchman, Zalmi. “The On-Demand Economy Is Here To Stay, And Now Is The Time To Put It To Use For Your Business.” Forbes, Forbes Magazine, 14 July 2015, http://www.forbes.com/sites/zalmiduchman/2015/07/14/the-on-demand-economy-is-here-to-stay-and-now-is-the-time-to-put-it-to-use-for-your-business/#1a5a305443f8.
26. 26“Small Business/Self-Employed Topics.” Sharing Economy Tax Center, US Government Publishing, 19 Sept. 2016, https://www.irs.gov/businesses/small-businesses-self-employed/sharing-economy-tax-center.
27. 27www.sharedeconomycpa.com
28. 28“Cr...

Table of contents

• Cover
• Title
• Copyright
• Table of Contents
• Foreword
• Introduction
• A Historical View
• Traditional Funding
• A Crowdfunding Primer
• To Crowdfund or Not: Pros and Cons
• Types of Crowdfunding
• Crowdfunding and Taxes
• Crowdfunding Participants
• The Trouble Between Form 1099-MISC and Form 1099-K
• Crowdfunding and Taxes: Case Studies
• Crowdfrauding
• Avoiding Crowdfunding Scams
• Endnotes