Crowdfunding, the practice of going directly to the public for financing, is an increasingly important strategy for raising money. Social media and various crowdfunding platforms facilitate direct access to the public, and media stories about campaigns going viral suggest endless possibilities. Crowdfunding is still evolving, and the wide variety of projects, platforms, and pitches suggest new questions for many areas of the law — from intellectual property, to securities regulation, and, of course, to tax law. Although the means of funding may be novel, once a particular project is categorized, the federal income tax law for the selected category is often settled — or at least as settled as it is for taxpayers using more traditional financing paths. The challenge is to sort the diverse features of crowdfunding into established tax categories. That sorting almost always depends on the facts and circumstances, and such tests introduce at least some uncertainty.
This special report begins with a brief overview of crowdfunding, organized with a view toward applying federal income tax law and then reviews the scant amount of available administrative guidance, and turns to a discussion of various federal income tax rules of particular relevance to the taxation of crowdfunding. Finally, it concludes with possible avenues for future administrative guidance.
Download this special report now.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)