September 25, 2018 at 2:01PM

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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?

Cheers!

Mike

1 Comment

If the money is for a business whose intent is to eventually turn a profit, then you are allowed to lose money for the first few years and therefore would not owe any taxes. At some point, if you never make a profit, the IRS could determine that it was never really a business, just a tax shelter. If you are making a film for fun and not as a business, then what you spend is not deductible and would be taxable income.

Of course, as a disclaimer, I would advise you to consult a tax expert.

October 7, 2018 at 9:29PM

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