April 18, 2014

Crowdfunding & Taxes: Kickstarter’s Hidden Bite (& How to Stop the Bleeding)

After months of busting your hump making pitch videos, coming up with rewards, and tweeting like there was no tomorrow, (hopefully) you've found yourself celebrating a fully funded crowdfunding campaign. However, before you start reveling in your success, you might want to figure out just how much of those funds will make it into your production's budget not only after you pay your platform's fees, but after you pay the taxman as well. Yes, taxes can take a pretty substantial bite out of your funds, but here are a few ideas on how to run your Kickstarter campaign to make the bite less severe come Tax Day next year.

This is a guest post by Ben Henretig.

Kickstarter has emerged as an incredibly powerful platform for creatives to crowd-fund their creative work. In October of 2012, I ran a Kickstarter campaign to fund my feature documentary The Happiest Place, which explores what we in the West might be able to learn about living happier, more meaningful lives from the small Himalayan Kingdom of Bhutan -- the only country in the world to use Gross National Happiness as the yardstick for progress. The campaign exceeded our wildest expectations -- in two days we met our goal of $45,000 and finished the campaign at nearly 250% our goal -- $112,000.

We were ecstatic. After months of hustle and personal investment, I finally had the money to bring this film to life. Yet, in the months since closing the campaign, I've come face-to-face with the hidden costs of running a Kicktarter campaign. After Kickstarter and Amazon take their share (collectively about 8%), you pay for fulfillment of the prizes you've offered (say, 10% to 15%) and income tax on the total (up to 44% depending on the total funds raised and your tax bracket!) you as a creator retain more like 38% - 82% of the total you've raised. Not exactly free money.

The single most impactful factor for determining how much of your hard-earned Kickstarter money ends up in your pocket is the degree to which you are able to reduce your tax exposure.

I am by no means an accountant and am not qualified to give proper tax advice, but my hope is that by outlining a few (avoidable) mistakes, I can help save you some money and heartache.

Include the cost of taxes and reward fulfillment when preparing your budget.

The painful reality is that the entire total you raise through Kickstarter is the total that's reflected on the form 1099-K you receive from Amazon Payments and that you pay tax on, NOT the total that you are paid after Amazon and Kickstarter take their share. Crazy, right? So, the taxable total reflected on my form 1099-K was $111,937.01, which reflected the total funds raised ($112,110) minus any payments that were pledged but didn't go through. If you aren’t able to spend 100% of your Kickstarter funds on deductible expenses in the tax year you receive your funding, make sure to budget for the tax burden.

Run your campaign in the beginning of the tax year

Like most Kickstarter campaigners, I intend to spend every penny of our funds on the film, which should mean that we should have significant tax deductions and reduce our tax liability to almost zero.

Unfortunately, I ran my campaign near the END of the tax year (October/ November), which meant that after the money hit our account we only had a window of 2 months to rack up deductible expenses and reduce our tax exposure. By running your campaign early in the tax year, in which you plan to spend the majority of your Kickstarter funds, you can afford yourself a much larger window and deduct a significant portion (if not all) of the Kickstarter funds and reduce your tax liability.

I've got the money in -- now how can I reduce my tax liability?

Assuming you aren't able to spend all of your Kickstarter funds received in a given tax year, there are a few ways to explore reducing your tax liability. Some are common practice, and others are still rather unproven.

Given that Kickstarter and crowdfunding as a whole are relatively new phenomenon, it's still a bit unclear exactly how the Kickstarter funds are treated with respect to tax law, so take this advice with a grain of salt.

Here’s what Kickstarter has to say on the matter.

The case can be made that a portion of the Kickstarter funds qualify as a "gift" rather than income, given that for each prize that is selected a small portion pertains to the actual value of the reward -- the rest is essentially a "gift." Supporters of your campaign don’t think the amount they are paying is just for the reward; it’s assumed that most of the donation is a "gift" for which your receive a modest reward. So, for example, in the case of a $45 pledge for a DVD, $15 may correspond to actual cost of the DVD and the rest would be considered a gift.

Subsequently, the approach one accountant I've spoken with has taken is to include an excel schedule with your return detailing every transaction/gift made -- then the portion of each gift that would qualify as "taxable income" (which basically corresponds to the cost of the actual goods/services the person would be receiving at a given prize level) as well as the "gift amount" which corresponds to the amount above the cost for a prize level. In my example above, the gift amount would be $30 per $45 gift. Using this approach could reduce your exposure significantly, although it should be noted that, while defensible, the jury is still out as to whether the IRS considers it valid.

Another approach, detailed by Michael Guenther, is to use the accrual method of accounting which would allow you to pay taxes on the funds received when the balance is earned (i.e., your product/game/film is made) rather than when you receive payment. This would give you much more time to spend your Kickstarter funds on your project and deduct the expenses.

Consider creating an entity / LLC (if you haven't already) for receipt of funds rather than using your personal information.

When I ran my campaign I had yet to form an LLC for the film, so I used my personal social security number/tax ID to create my Amazon Payments account (If you didn't know, Amazon Payments processes payments for Kickstarter). Later, in my mad scramble to find a way out of paying taxes on the entire balance of $112k in my personal income taxes, I found out that as an LLC if you file as a C-Corp have the opportunity to elect the timing of your financial year-end, which means that if I was able to have the K-1 from Amazon Payments sent to the C-Corp rather than to me personally as an individual, I would have been able to extend the financial year for my film many more months and have more time to spend down the $112k and reduce my tax exposure.

Yet, after many, many calls to Amazon to try and update my account information on file to change it to the LLC, I found out that Amazon refuses to change your payment information on file after any money has hit the account. Takeaway -- be certain that your Amazon Payments account profile reflects the vehicle you want to have incur the tax burden for the funds, and be clear on the costs and benefits of using your personal SSN or that of your LLC.

If you only take one thing from this post, it would be to meet with a credible accountant BEFORE running your campaign. (In addition to Michael Guenther, I would recommend Fred Siegel -- feel free to follow @happiestfilm on Twitter/DM me and I’ll send you details).

Do you have any ideas as to how to reduce the tax burden for Kickstarter campaigners? Let us know in the comments below!


Ben HenretigBen Henretig founded Micro-Documentaries, because he believes in the power of documentary film to bring about social change and inspire action. A graduate of Stanford University Film and Media Studies, he uses his background in art, music, communications and filmmaking to produce beautiful, powerful short-format documentaries for nonprofits and purposeful businesses making positive change in the world.  Currently, Ben is working on two feature-length documentary films: A Las Calles, that follows the lives of working/street children in Quito, Ecuador, and The Happiest Place, a feature-length documentary telling the story of the first human-powered, border-to-border journey across Bhutan.

Your Comment

37 Comments

Thanks.

April 18, 2014 at 6:28PM, Edited September 4, 11:56AM

0
Reply
moebius22

Thanks. This is an eye opener. Ron Grant

April 26, 2014 at 3:28PM, Edited September 4, 11:56AM

8
Reply
Ron Grant

Good article. But isn't all of this a no brainer about the reality of crowd funding? Shouldn't all CF projects budget in taxes and fees before the campaign is actually started so pledgers are given the true picture about how much the project will cost? Are film makers that ignorant and naive to think that you don't have to budget tax, fees, and on costs etc as the first point of making a budget and also, that if you're raising money to make a film, its taxable income whether a sole trader or company and not all items in the budget will be a 100% offset? sheeesh....

April 18, 2014 at 7:23PM, Edited September 4, 11:56AM

0
Reply
shaun wilson

Well, Shaun Wilson.. forgive us being naive, we are creators not business man! (like yourself..) Some people may know a lot more about the money aspect yet can't create, let say: a 3D printer in a garage.. :)

April 19, 2014 at 3:01AM, Edited September 4, 11:56AM

0
Reply

unless you're contracted by a broadcaster or distributor, you have to be both the creative and the business erson/lawyer/accountant in order to to survive. But regarding your example, I asked an EP the other day what software his 1AD used for generating call sheets and he said 'whats a call sheet'? which was followed a few moments later "whats ProRes?'. So yeah, I agree with you, the money people don't often have a clue about what we do creatively (nor care) but on the other hand, they're the ones who can afford to green light your dream projects (and mine) which unfortunately all too often, we cant.

April 19, 2014 at 6:11AM, Edited September 4, 11:56AM

0
Reply
shaun wilson

why not fundraise under the c corporation. you only pay taxes on what's left over at the end of the year after you've covered all your expenses. lower tax rate too. LLC passes all the money to you, so you have to pay personal income tax rate which is higher than corporate tax rates..

April 18, 2014 at 7:57PM, Edited September 4, 11:56AM

0
Reply
Mike B.

I'm pretty sure that's the lesson here.
However, if you're in CA that means fees of @$800 a year for that LLC to exist. And filing dissolution papers can be a pain if you only needed that company for 2-3 years. Obviously its a LOT cheaper in most other states.
Also, it gets very annoying if you make say 1 project a year for 5 years. You should now have 5 LLCs you are filing for (if you try do it as one entity you better be VERY organised, and have no copyright issues or differing investment scenarios across those projects). Over a 10 year period, that's a lot of paperwork, so you may as well learn it now.

My advice to every filmmaker: be good friends with your accountant, and/or lawyer.

Finally, why run this piece on a holiday Friday when your traffic is probably through the floor? This stuff is really important! /rantover

April 18, 2014 at 10:11PM, Edited September 4, 11:56AM

7
Reply
marklondon

We were supposed to get it out earlier in the week, but stuff happens. We figured if we ran it Friday afternoon we could at least have it at the top of the page overnight... Agreed that this is very important stuff and I meant to write a similar post myself (years ago).

April 20, 2014 at 8:53PM, Edited September 4, 11:56AM

6
Reply
avatar
Ryan Koo
Founder
Writer/Director

I think all creators and entrepreneurs should go Galt until taxes are 1.5% (no matter the tax bracket) or non-existent. The idea of taxing people who are creating products and value for the world is disgusting. Not to mention the money the creators keep is STILL TAXED again when they purchase goods and services for the film. Are people waking up to the real destruction of wealth in society yet?

April 18, 2014 at 8:37PM, Edited September 4, 11:56AM

0
Reply
bwhitz

Very true. :(

April 19, 2014 at 3:04AM, Edited September 4, 11:56AM

0
Reply

So what creators and entrepreneurs should pay no tax and just leave it to the ordinary poor people, is that it?
I'm from Scotland, my taxes pay for the great hospital that meant when my daughter was born she was born alive instead of dead. They pay for the roads I use to drive to my shoots and the bridges I use to cross over our many rivers. They keep our streets clean, our roads free of ice in the winter so I can do my work and they help old people not to die from the cold or neglect.
They save children form child abusers and pay for those who come to help me when i'm attacked in the street. If i'm stuck in a burning building, someone who earns a living from my taxes will risk his or her life to try and save me.
Finally, after years of study at the fantastic school my daughter goes to, paid for by my taxes, she will be able to read and write so well that she too will be able to recognise what nonsense is written on internet forums when people don't think before they write.

April 19, 2014 at 11:35AM, Edited September 4, 11:56AM

4
Reply
Duncanario

You seem to be living under the delusion that only the government can supply all these services..... but imagine what a flourishing society we'd live in if you got to keep the money they take away from you, and you got to spend it as *you* chose! And not by some bureaucrat in the capital. You'd still be able to get all those things for your daughter, and more!

We'd all have a much more prosperous and happier society if the tax burden was reduced, and people then had more consumer freedom in what they wish to spend it on.

April 20, 2014 at 4:39AM, Edited September 4, 11:56AM

1
Reply

It isn't true. My wife has a son from a previous relationship who goes to a run of the mill fee paying school. I costs $15,000 a year. That is the annual salary of at least 25% of the population, How would they then pay for health care, food, electricity etc if they had to pay that.
I'm curious as to how a private Fire service would work. As you lay unconscious in your burning house, how would you be able to shout your credit card details to the fire contractors waiting below. Or if you were conscious but had no money would they just leave. That is pretty much what happens to you in a US hospital if you have no money already. As the private police try stop you from being robbed at knife point for the $40 dollars in your pocket you have to get them to phone your wife to pay the $150 dollar fee they charge to come to your rescue.
I'm not trying to flame anyone but the US health system just shows exactly what's wrong with this privatised utopia you seem to want. If you have money then, mostly you are OK, whilst you have it. If you don't you are screwed. It isn't just lazy people who have no money. What if you have a heart condition and lose your job, so no health insurance but you heart condition doesn't go away. Your house might have to to pay the bills though. My first time in the states I met a 95 year old blind man who was still working just so that he would have some health insurance.
I'm sorry but this really is what disgusting is and it is just not civilised. The argument should be about what taxes are spent on and, legitimately, how high they need to be.

April 20, 2014 at 7:54AM, Edited September 4, 11:56AM

4
Reply
Duncanario

thing is, all those people you mentioned would still be there to do those jobs, if you honestly think your taxes are spent well, not wasted and people don't deserve more of their own money, then I have to agree that your are living in your own world.

September 3, 2014 at 8:02PM, Edited September 4, 11:56AM

0
Reply
shaun

I thought you still had to pay if the firetruck responds to a call at your house. And at hospitals, you still have to pay if the ambulance picks you up (like, hundreds of dollars). This whole government-run thing isn't working very well. Honestly, I think a big problem is that they misuse a lot of money, they fund too many things, and the country is just too big for all of this. And then most of us get double or triple taxed, taxed on gifts, taxed on this and taxed on that... it all needs to be simplified.

February 19, 2016 at 8:06AM

2
Reply
avatar
Kendal Brenneman
actress/adventurer
8

How about this, bwhitz? You pay your 1.5% flat tax, but since you're a "Galt" and not a parasite, you remit to the rest of us user fees every time you use a service or facility not funded by that 1.5% contribution, on the assumption you don't want other people to fund your activities on a charitable basis.

Strange, too, that you don't object to Amazon taking far more than 1.5%, but when the U.S. government does it and actually returns some value, in the form of public services which makes conducting business possible, it's a crime against humanity.

You also ignore the obvious: this money received is fully tax deductible if you're really in the film business and spend it. OTOH, if you really hate taxes, there are plenty places you could go to evade them. You wouldn't have much chance of a filmmaking career in such countries and your life wouldn't be worth much, but that's a small price to pay for freedom.

April 21, 2014 at 4:51PM, Edited September 4, 11:56AM

4
Reply
jadda

Very odd claim, BW: if you actually read the "The Fountainhead", "going Galt" means refusing to work or be productive, in order to spite a society which isn't sufficiently worshipful of you and won't repeal your income taxes.

This is an hilarious prospect in the movie business, where supply far exceeds demand. So, go ahead and "go Galt", and deny the world the fruits of your genius, and see if anyone cares. Or even notices.

Then again, nobody could blame you for not actually reading The Fountainhead, since it's one the silliest books ever written.

April 22, 2014 at 2:36PM, Edited September 4, 11:56AM

0
Reply
Galt2

We live in a cruel money hungry country run by greedy politicians, unfortunately it' the reality we must deal with so we best be prepared smh.

April 18, 2014 at 10:30PM, Edited September 4, 11:56AM

2
Reply
Brad Watts

The LLC and C-Corp are two different entities. The LLC still passes all the income onto your individual SSN if you are the only one in the LLC. If you have a partner in the LLC then it is divided based on the percentage ownership for the two of you. The main reason to use the LLC is to remove your liability and they are simple to set up and anyone can handle it with a minimum amount of time...no need for a lawyer, accountant, etc. A C-Corp is a corporation so your income is taxed at the corporate level first and then again if you earn a salary and the paperwork (record-keeping, etc.) is a nightmare for an individual to handle. Go the LLC route. Now you also need to understand the rest of the tax code for how to set up and run your LLC as far as when and how to handle the tax situation for movie production. Make sure to keep track of all of your expenses or all three phases of production. (pre-production, production and post-production). The key is to understand how to set up the film tax structure (finance structure of a film) so you are not taxed until you have completed every phase of production which included distribution, etc. I am not 100% sure on the number of years in the film tax structure but I know it can happen over more than a one year period. I highly recommend everyone learn this on their own and do not rely on anyone else. Do your own taxes, understand the business end of the film business, because it is 1% creativity and 99% business. How often do we read about top-notch professionals being taken to the cleaners by their business partners. Learn the business end.

April 18, 2014 at 10:46PM, Edited September 4, 11:56AM

0
Reply
CurtisKessinger

The part "... 38% – 82% of the total you’ve raised. Not exactly free money." REALLY sums up how twisted you've got it.

38% - 82% of money you didn't earn, that came from other people ***IS*** free money!

You write like a spoiled little entitled fool, which I'm sure you're not. This has nothing to do with politicians; it has everything to do with selifshness.

If you want more money, factor in taxes, fees, and charges and ask for more. You're a filmmaker? You're also supposed to be a businessperson too.

And ALWAYS remember - anything you have left after paying what you owe on your income (whether you earned it or not) - *is* free money.

Now quit whining and go and make a film.

April 19, 2014 at 9:32AM, Edited September 4, 11:56AM

0
Reply
sheesh

Thanks for this well-written post, Ben.

During our 2 years of researching crowdfunding before launching our CENTS Kickstarter, very little information was available regarding tax implications for successful campaigns. Even accountants weren't putting out guidance. We essentially put together a lot of what you discovered on our own.

Because of potential tax liabilities, we launched our CENTS Kickstarter in January, used our LLC with Amazon Payments, and have our shoot planned for this summer to have enough expenses to offset our income. If we couldn't shoot this summer, we planned to work with our accountant to use accrual method accounting to reduce our tax exposure.

I know this post will be very helpful to many creatives just started to research crowdfunding, and I'll be sure to point them to this link since it was exactly what I was looking for during my research, but could never really find.

April 19, 2014 at 10:20AM, Edited September 4, 11:56AM

0
Reply
avatar
Christopher Boone
Writer
Writer/Director

I wonder if the huge number of exilled Butanese living as refugees in camps in Nepal share this happiness?

April 19, 2014 at 3:17PM, Edited September 4, 11:56AM

0
Reply
Sceptic

damn straight! This doco is the most shallow thing I have seen in ages.

April 19, 2014 at 7:43PM, Edited September 4, 11:56AM

0
Reply
matt

Taxes are so damn disgusting. I commend anyone who simply doesn't pay them.

April 19, 2014 at 6:01PM, Edited September 4, 11:56AM

0
Reply

Great article Ben,
It gives me more to think about before I start my campaign in June. Thanks! Also thanks for the great comments to the post NFS family they are always informative as well.

April 20, 2014 at 11:50AM, Edited September 4, 11:56AM

0
Reply

Jesus guys. We're supposed to be filmmakers/aspiring filmmakers. This is an INCREDIBLY valuable and useful article that I think a lot of creative types-who aren't necessarily financial gurus-would benefit from.

There are maybe 30% of the comments on this article that actually pertain to the article. If you can't say something more constructive that the average YouTuber, maybe you should just not hit that 'submit comment' button? Give it a try. It gets easier every time, and we'll be spared the inane commentary.

April 20, 2014 at 7:29PM, Edited September 4, 11:56AM

4
Reply
Dave Mueller

There are a number of issues and suggestions raised by this post which I'm concerned could lead people to make some bad choices. Here are my thoughts.

1. Anyone planning to make a $100K film project should be researching and deciding on corporate structure first. Even when I was doing a little $7K artbook project, two of the first books I purchased were _The Small Business Start-Up Kit for California_ and _Form Your Own Limited Liability Company_, both from Nolo Press. The first chapter -- and there's a reason that it's the first chapter -- of that first book is “Choosing a Legal Structure”. I encourage everyone to do this homework. Don't just start filling out Kickstarter and Amazon forms and putting in your own SSN.

There was no way that I was going to do any artistic project without having at least the modest amount of protection offered by an LLC. If you do a film project as a sole proprietor, which is what you're doing if you use your own SSN, and if something goes wrong on your project, both creditors and litigants can come after your savings account, your home, any of your assets. Don't become the first “Kickstarter horror story” of the filmmaker who got sued into bankruptcy because you didn't protect yourself from liability.

It's also my understanding that working with unions such as SAG is a non-starter until you have a corporate entity (not a Sole Proprietorship) that's able to sign legal agreements.

2. The post and some of the follow-up comments appear to conflate C-corps and LLCs. These are completely different types of legal entities with different tax treatments. Filmmakers need to do their homework and research these structures. Most independent filmmakers will probably want an LLC.

3. The post suggests “as an LLC, if you file as a C-corp”, which is likely NOT something that you'll want to do. In general, independent film projects incur sizable losses, and you want to be able to pass those losses through to your own personal taxes as business losses, thus reducing your own tax burden. You can't do that if you're an LLC that chooses to file as if you were a C-corp. This is covered in the Nolo Press book on LLCs.

4. “The case can be made that a portion of the Kickstarter funds qualify as a “gift” rather than income.” My non-lawyer opinion is that this is a dangerous position for Kickstarter to be advocating, and that I wouldn't want to be the filmmaker on the receiving end of the IRS case that's going to happen someday on this issue. I expect both the IRS and state taxing authorities to eventually rule that if you run a Kickstarter and somebody gives you $50 expecting a DVD and a poster, that they've paid you $50 for a DVD and a poster, not $20 plus a “$30 gift”. That said, it shouldn't be necessary to resort to these sorts of semantic games to reduce taxes - see the next point.

5. The post mentions “accrual accounting”, however the accounting principle we're looking for here is called “unearned revenue” or “deferred revenue”. Standard corporate accounting says that you don't “book the revenue”, i.e. cash in doesn't count as income, until you've actually shipped the product that your customer purchased. If somebody prepays you $50 for a DVD that doesn't exist yet, that $50 doesn't count as revenue until your film is made and you've shipped the DVD. So yes, please work with your accountant to get this right -- the cash should be able to sit in your LLC bank account and not count as taxable income until you ship product.

6. “The painful reality is that the entire total you raise through Kickstarter is the total that’s reflected on the form 1099-K you receive from Amazon Payments and that you pay tax on, NOT the total that you are paid after Amazon and Kickstarter take their share.” OK, but so what? This shouldn't matter, regardless of corporate structure. You still have business expenses equal to the amount of the Kickstarter and Amazon commissions, and those will offset the income on the 1099-K. In fact, if you're properly tracking the cash in as deferred revenue, you probably even get to book the commission expense as a loss, but not book the income as a gain, which would be a great situation - you've got positive cash flow but your accounting says you're running a business loss! That said, the tax situation is probably much cleaner if you have an LLC, because then you're keeping a separate set of books for your business, and at the end of the day you usually end up computing a loss that, in most LLC setups, passes through to your personal Schedule C and reduces your personal taxes.

7. Completely unmentioned here is the issue of sales taxes, which are similarly likely to get somebody into trouble someday, particularly since Kickstarter continues to stay silent on the issue. My non-lawyer opinion is that filmmakers need to be remitting sales tax on every Kickstarter reward that you ship to your home state. If you're in California and somebody in California pays you $50 via Kickstarter for a DVD, at some point you owe the state of California sales tax on that $50, either now or at the point that you ship the DVD. Today the state of California isn't (to my knowledge) chasing down Kickstarter projects asking for payment, however it's just looking for trouble to not pay your sales tax. You're a business, you're selling a product, so you owe sales tax on in-state shipments. It's extraordinarily disappointing that Kickstarter refuses to add a sales tax engine to their software - they should offer the ability to collect taxes from the customer directly (Paypal has offered this capability forever), rather than the current system where the filmmaker is forced to pay sales tax out of the base amount received.

Takeaways:
1. Business structure first, fundraising second.
2. Don't run a film project as a Sole Proprietorship.
3. Buy a few small-business legal books and read the appropriate chapters.
4. Get an accountant.
5. Learn the basics of accrual accounting (i.e. standard business accounting), or have somebody around who can tell you how to get it right. You need to understand the concepts of unearned revenue, capital assets that might need to be depreciated rather than expensed, and how you have to expense inventory (such as DVDs) as you sell it, not at the time that you pay for it.

Disclaimers: I'm neither an accountant nor a tax attorney, but I do have a California LLC, have done a successful Kickstarter, and know just enough financial accounting to get myself into trouble. :-)

Bruce

April 21, 2014 at 12:36AM, Edited September 4, 11:56AM

1
Reply

In all seriousness you should of wrote this article haha great info thank you!

April 21, 2014 at 11:09AM, Edited September 4, 11:56AM

0
Reply
BobHadABabyItsABoy!

Yes! Excellent points. I often remind people about the sales at issues to!

April 21, 2014 at 10:16PM, Edited September 4, 11:56AM

0
Reply

Great article! That's why I like to use www.kapipal.com instead of Kickstarter or indiegogo, there's no service fee. All payments go through Paypal. No 1099s either. PayPal deducts their fee, sends a check to you for the rest, and you log as income for your accountant. Here's an article I wrote that talks about kapipal and alternative sites. http://www.scriptmag.com/features/writers-web-advice-crowdfunding-cindy-...

April 21, 2014 at 10:23PM, Edited September 4, 11:56AM

0
Reply

Excellent advice, Bruce! Thank you!

April 23, 2014 at 1:20PM, Edited September 4, 11:56AM

1
Reply

Yeah, I immediately noticed the lack of sales taxes as well. State apportionment of sales revenue is hell. Cameron Keng has written and spoke about this issue at different film events I've been to: http://www.forbes.com/sites/cameronkeng/2013/04/17/warning-kickstarters-...

April 25, 2014 at 11:41AM, Edited September 4, 11:56AM

5
Reply
Mark

@ Bruce --- what you say makes good sense.
Just the information I was looking for.
Thank you for taking the time.

July 1, 2014 at 7:54PM, Edited September 4, 11:56AM

0
Reply

Great info here, especially about the tax year. Fortunately, my campaign which is actually running now will give me time to wrap up all my expenses in this calendar year.

How does all this apply if you have a 501c3 non-profit as your fiscal sponsor?

Check out my current campaign here:

http://kck.st/RVoQBL

A groundbreaking documentary film on a grassroots effort to fight malnutrition in Indonesia. Oh, and it's organic!

April 26, 2014 at 2:08PM, Edited September 4, 11:56AM

4
Reply
Jon

Thank you so much for this info. As for the few comments that are obviously fueled by jealousy, I must say this is a great convo. I am not a tax expert and new to the ins and outs of this new source of funding. Like yourself I to have used KS and never was aware of the "details" SO BRAVO ! Not only for posting this for likeminded creators, but also for also having the courage to help the masses.- Military Vet www.joannaellenbeck.net

May 28, 2014 at 2:59PM, Edited September 4, 11:56AM

6
Reply

What's up to every body, it's my first pay a quick visit of this website; this weblog
consists of awesome and actually fine data in favor of readers.

July 27, 2014 at 1:38AM, Edited September 4, 11:56AM

0
Reply

At this moment I am going to do my breakfast, when having my breakfast coming over again to
read additional news.

August 12, 2014 at 10:26PM, Edited September 4, 11:56AM

0
Reply

Ben, this is a great article! I'm in the midst of campaign planning now, and your insights are invaluable. – Laine, MoriahPictures.com

March 13, 2017 at 11:23AM

0
Reply
avatar
Laine Soria
Writer, Director, Producer
9