What are the tax implications of crowdfunding?

What are the tax implications of crowdfunding?

Crowdfunding can have various tax implications depending on the type of crowdfunding and the jurisdiction. Generally, funds raised may be considered income and could be taxable.

Are there different tax rules for rewards-based crowdfunding?

Yes, rewards-based crowdfunding often treats the funds as income, but you may also have to consider the value of rewards given to backers.

What about equity crowdfunding?

In equity crowdfunding, investors receive shares in the company, and any profits distributed as dividends may be subject to capital gains tax.

How can I keep track of my crowdfunding income for tax purposes?

It's essential to maintain detailed records of all funds received, expenses incurred, and any rewards or equity given to backers for accurate tax reporting.