Crowdfunding Taxes
Hello. I'm an actor and filmmaker creating a small-scale cinematic project. My intention is to secure funding through a crowdfunding platform such as Kickstarter, IndieGogo, Seed&Spark, or GoFundMe. I have a query regarding the financial aspect: If I successfully raise funds in 2023 but get to the actual filming in 2024, how will these funds be treated in terms of income and expenses for tax purposes? Specifically, must I report the donations as income in 2023, even though we won't start incurring filming expenses until 2024? Additionally, can I offset this potential income by claiming a loss in 2023 before our filming activities begin in 2024?
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