Ask HN: Listing investor money on taxes?
My company got money through Kickstarter.com to work on a project, but no one seems to have any idea how to list it on taxes. Just wondering what the standard procedure is for money received from investors/VCs, since that's the closest thing I can think of. Thank you in advance for any info.
1 comments
I don't think money from KickStarter is investment money. It sounds like you sold items, but haven't shipped them yet (of course). Investors would buy stock, which is completely different.
So you probably should book income (which you can't recognize as revenue until you have shipped it).
So you probably should book income (which you can't recognize as revenue until you have shipped it).
Thanks for replying. So income that is not revenue. That makes sense.
Some backers chose to receive nothing, though, so for them its not even a transaction, just a donation, I guess. It's more complicated than just selling items, even though it looks like that on the surface.
Some backers chose to receive nothing, though, so for them its not even a transaction, just a donation, I guess. It's more complicated than just selling items, even though it looks like that on the surface.