September 25, 2018 at 2:01PM
Taxes, Kickstarter, Movies WTF?
Hi, my name's Mike. I recently ran a successful Kickstarter for a film that will be shooting at the end of October. The Kickstarter finished two weeks ago and we raised $23K. This is all good news.
However, as I am a relatively new producer, I didn't wholly consider the tax implications of running a Kickstarter and setting up an LLC for the film before committing to our crowdfunding, pre-production,and production schedule...therefore, I believe this money, which will be deposited into MY own checking account (albeit a separate one I've set up to avoid mixing funds), will be considered PERSONAL INCOME.
In a mad dash I am trying to figure out an effective way to avoid tax liability as every cent of this money will go directly into this movie and there will be no profit to be had.
Some people have told me that as long as I spend ALL of the money by the end of this calendar year and have very thorough bookkeeping I can write the whole film off as a loss...however I cannot find much on the world wide web to corroborate this.
Thoughts? Advice? Help?