Sunday, October 13, 2013

Crowdfunding: Canadian tax implications

Crowdfunding has become extremely popular over the last number of years.  Let the public know what you want to do, and if they believe in your project, they will contribute amounts that although small from one person, overall add up to significant amounts of money.

Crowdfunding has allowed many individuals and small companies to raise capital money for projects that they were unable to get loans or other financing deals for.

Unfortunately, the overall perception of crowdfunding money has been that it is "free" money to simply put towards the outlined project.

Canada Revenue Agency put out an interpretation bulletin this week stating that money that comes from crowdfunding is considered income, and therefore is taxable.

If crowdfunding is in your future, keep this in mind, and consult your local tax preparer or accountant to look at how this will financially affect your future project.

No comments:

Post a Comment

I love getting comments! Feel free to leave one!