Beware of the Tax Man when Running Crowdfunding Projects, says Expert
Allan Madan, CPA, CA
The act of raising monetary contributions for projects and other ventures through various online platforms otherwise known as crowdfunding is becoming increasingly popular… However, individuals who make donations to these ventures should not expect a tax credit as these are not classified as registered charities with the Canada Revenue Agency; they are also considered as cash gifts rather than donations. The tax situation for these recipients of crowdfunding also becomes quite complicated and is evaluated on a case by case basis by the CRA. To learn more, read this article on tax implications of crowdfunding projects.
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ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
