Kickstarter and tax exemption
Posted: Thu Jul 28, 2022 8:20 pm
Hi everyone,
I have a question on Kickstarter's tax policy. In this link https://www.kickstarter.com/help/taxes, Kickstarter mentions that some contributions may be categorized as donations that are exempt from tax:
I have a question on Kickstarter's tax policy. In this link https://www.kickstarter.com/help/taxes, Kickstarter mentions that some contributions may be categorized as donations that are exempt from tax:
Here is a question. Suppose that some organization buys $5K worth of my product on Kickstarter. Can this organization deduce this amount from the yearly tax they have to pay? For example, if the organization needs to pay $10K in tax by the end of the tax year, can they deduce the $5K they pledged/gifted to my project from this number and reduce the tax they owe to $5K?Beyond deductions, a creator may be able to classify certain funds raised on Kickstarter as a nontaxable gift, and not income. A gift is something given out of “detached and disinterested generosity” for personal reasons and without the expectation of getting something in return.