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Is money received through Kickstarter considered taxable income

  • 02-08-2019 3:23am
    #1
    segosego89
    Registered Users, Registered Users 2 Posts: 219 ✭✭


    Hi there,

    Just wondering does anybody know whether money received through a Kickstarter campaign would be considered taxable income in the Republic Of Ireland?

    Kind regards,


Comments

  • #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Is it an investment? Are you giving contributors a part ownership of the business? Then no.

    If no benefit to the contributor it would be deemed a gift or income, and taxable.


  • #3
    segosego89
    Registered Users, Registered Users 2 Posts: 219 ✭✭segosego89


    Cheers for the reply. It's not an investment but the idea is that people who are interested in your project will donate money to get the project up and running with the understanding that you will finish the project and they can ultimately consume and enjoy the end product. They are not getting anything in return in a monetary sense.

    Apologies, I don't understand you're last sentence. You mean if no benefit to the contributor then it would be deemed a gift and not taxable? Or have I misunderstood you?


  • #4
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    segosego89 wrote: »
    They are not getting anything in return in a monetary sense.

    Apologies, I don't understand you're last sentence. You mean if no benefit to the contributor then it would be deemed a gift and not taxable? Or have I misunderstood you?

    If they are not getting a product or ownership then i would be of the opinion it's either a gift (taxable unless from certain people, usually related to you) or as income.

    In either of the two above cases it would be taxabale. Imagine the money laundering ability otherwise :)

    'Yes, your honour, all these lovely people gave me money to start up my plastic fish farm emporium. It's just a pure coincidence that nobody has burnt down any of their buildings in the last six months.'


  • #5
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,888 ✭✭✭✭Calahonda52


    It depends on the paperwork
    how do they :and they can ultimately consume and enjoy the end product.
    How is that measured: say the product was a robotic sex doll?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #6
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    segosego89 wrote: »
    Cheers for the reply. It's not an investment but the idea is that people who are interested in your project will donate money to get the project up and running with the understanding that you will finish the project and they can ultimately consume and enjoy the end product. They are not getting anything in return in a monetary sense.

    Apologies, I don't understand you're last sentence. You mean if no benefit to the contributor then it would be deemed a gift and not taxable? Or have I misunderstood you?

    You probably should get an accountant to advise you at this stage, you may benefit from setting up a company even at this stage if you expect to be profitable later.

    But yes, the money received is connected with a trade, it is taxable under case I rather than as a gift (also taxable under CAT).


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