Crowdfunding

image: Several young men and women gather around a laptop computer with nervous excitement to view the results of their crowdsource campaign

The Tax Consequences of Crowdfunding

With the onset of the coronavirus pandemic, crowdfunding websites such as Kickstarter and GoFundMe have become an increasingly popular way for small business owners to stay afloat. The upside is that it’s often possible to raise the cash you need; the downside is that the IRS considers that money taxable income. Let’s take a closer look at how crowdfunding works and how it could affect your tax situation.

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