Millions of taxpayers in the United States are using crowdfunding websites like GoFundMe and Kickstarter to raise money for important needs, such as paying medical bills, paying legal fees, or funding a new business venture.
Both the IRS and the courts have been surprisingly silent on the tax consequences of crowdfunding platforms.
The good news is that established tax law provides a clear road map for answering most tax questions created by raising money from a crowdfunding website.
By knowing these rules, taxpayers can use crowdfunding to raise cash and minimize their overall tax exposure.
