I am not a tax preparer and any comments I post are not intended, nor should they be construed, as tax advice. If you need tax advice, please consult a tax expert who is familiar with the area of tax expertise you need.
I will be addressing tax implications for crowdfunding campaigns in another post shortly.
Here’s an update on Dispel Dice – https://www.kickstarter.com/projects/dispeldice/dispel-dice. When I first looked at it, Kicktraq https://www.kicktraq.com/projects/dispeldice/dispel-dice/ had it trending towards a bit over $8 million. Spot checking the last few days, they dropped it to $7.7 million, later to around $6.5 million, and today it’s trending to $5.95 million. Unless it picks up a lot of steam in the next 21 days, I don’t see it getting anywhere near that level. A few hours ago, it was $2.095 million and hasn’t budged a whole lot as interest has died off in the campaign, or it hit as many people as it could. I expect there will be some growth, but they have done little to generate renewed interested. They met all of the Stretch Goals very fast.
My earlier post Dispel Dice Kickstarter Ends December 9, 2019. I haven’t changed my opinion on the dice being overpriced.
I mentioned this last time, but will restate it again in this post – potential tax liability issues. Here’s a general Kickstarter guide on taxes Kickstarter and Taxes https://www.kickstarter.com/help/taxes. The link includes links to taxing agencies in some other countries. I haven’t paid attention to current state tax laws/rates in California, but they hopefully checked with tax accountants familiar with crowdfunding tax issues before they started the campaign.
If you are thinking of starting a crowdfunding campaign, check with a qualified tax specialist in your area knowledgeable about crowdfunding tax issues. Be sure to include expected tax rates in your budget. My suggestion is go with the maximum tax rate for your area (federal, state, county, and local) in your projected costs. You may not need the maximum rate, but in this campaign, the majority of the the pledges will fall in the maximum rate. You can deduct appropriate deductions to reduce the potential tax bill. However, you need to take into account the type of accounting system your company will be using as that can make a huge difference in how you handle the tax issues.
Here are some of their social media links:
Official website: https://dispeldice.com
Kickstarter page: https://www.kickstarter.com/profile/dispeldice