Crowdfunding Websites

Crowdfunding websites, such as Kickstarter, can help new projects get off the ground.  But remember that money raised from crowdfunding isn’t a tax-free windfall.  It’s income, and that means that project owners could face some sort of tax liability.  Creating a financial projection to estimate your net income will be helpful and may save you money on taxes.  Also, if you are investing in a crowdfunding project, buyer beware that Kickstarter takes on no liability if the project owners do not deliver on their promise