Infinite Livecode Pledge

Mike Kerner MikeKerner at roadrunner.com
Tue May 24 10:56:44 EDT 2016


It is completely different.  VAT comes off the top line, like an excise
tax.  Income tax comes off the bottom line.  Therefore, if a firm is
plowing funds into development, it can be at or below 0 on the bottom line,
therefore the tax on the funds would be zero, and depending on its previous
history, there may even be a federal rebate.  Sales tax doesn't apply in a
case like this because you aren't getting a LC t-shirt, playing cards,
phone sleeve, etc.  Then there is the difference between S-corps and
C-corps, and their bases and rates, which would further depress the tax on
the take.

On Tue, May 24, 2016 at 9:57 AM, Richard Gaskin <ambassador at fourthworld.com>
wrote:

> Lagi Pittas wrote:
>
> > I have just paid my pledge and I was cheesed off that  20% of
> > my DONATION/PLEDGE has gone to the government.
> >
> > If doing feature exchange is to save Kickstarter fees it certainly
> > doen't do that.
>
> It doesn't seem much different from how it works in the States - from the
> Kickstarter tax guide:
>
>    In general, in the US, funds raised on Kickstarter are considered
>    income.
>    ...
>    Sales tax may also be applicable in certain cases depending on the
>    local rules. In general, sales tax applies only if the creator has
>    sufficient connection to the location of the backer.
>
> <https://www.kickstarter.com/help/taxes>
>
> --
>  Richard Gaskin
>  Fourth World Systems
>  Software Design and Development for the Desktop, Mobile, and the Web
>  ____________________________________________________________________
>  Ambassador at FourthWorld.com                http://www.FourthWorld.com
>
>
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