What crowdfunding expenses can I deduct on my taxes?

What crowdfunding expenses can I deduct on my taxes?

You can typically deduct expenses directly related to your crowdfunding campaign, such as platform fees, marketing costs, and materials.

Are there any specific limits on these deductions?

Yes, the IRS has guidelines on what qualifies as a deductible expense, and it's important to keep detailed records.

What if I used personal funds for the campaign?

If you used personal funds, you can still deduct the expenses as long as they are directly related to the campaign and properly documented.

Do I need to report the crowdfunding income as well?

Yes, any funds raised through crowdfunding are generally considered taxable income and should be reported on your tax return.