Texsox Posted June 1, 2020 Share Posted June 1, 2020 I found this interesting. I just received a message from Patreon regarding portions of my pledges now being taxed. For those of you not familiar Patreon is a way for artists and other creators to receive direct financial support from their fan base. What is being taxed are any tangible benefits the patron may receive. So if you receive free plans, exclusive content, etc. some value will be placed on it and taxed. All taxes collected will be going to the local governments where the donor lives. As I started reading I was thinking they were talking about people trying to write off their Patreon account as a charity and I was thinking of course that's not allowed. Now I see how someone could game the system and avoid paying tax on purchases if it's part of supporting something. Quote Link to comment Share on other sites More sharing options...
Dam8610 Posted August 7, 2020 Share Posted August 7, 2020 What sort of taxes is this subject to on the donor side? Sales taxes? Also, I assumed that the receiver of funds on Patreon would be subject to income tax, but is it somehow not? I can't imagine the scenario in which that's true (even NFPs would likely be subject to UBIT for Patreon accounts), but if Patreon income is somehow not subject to income tax, everyone should get a Patreon account. Quote Link to comment Share on other sites More sharing options...
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