Crowdfunding and income tax
If you earn or receive any money through crowdfunding, some or all of it may be assessable (taxable) income, depending on the nature of the arrangement, your role in it and your circumstances. All assessable income needs to be declared on your tax return.
Similarly, if any amount is assessable income then some of the costs related to gaining or producing that income may be allowable deductions, providing you have the appropriate records to substantiate your claims.
The tax laws which apply to investment and financial activity undertaken in a conventional manner (for example, buying goods and services, buying shares, lending money) apply in the same way to investment and financial activity conducted under crowdfunding.
You must keep records explaining all transactions that relate to your tax affairs, including any crowdfunding arrangement. Generally, you need to keep records of most transactions, in English, for five years. The five years starts from when you prepared or obtained the records, or completed the transactions, whichever is the later. [Read More] Or contact our office today on 49336999