DianeW777
Expert Alumni

Get your taxes done using TurboTax

It sounds more like a gift from backers as opposed to the tax consequences of the creator. If this is the case then there is nothing such as a nonbusiness loss for tax purposes on the part of the backer.

 

'Some projects that are funded on Kickstarter may go on to make money, but backers are supporting projects to help them come to life, not financially profit.'

 

 

In this scenario the backers may let someone take their money to do as they wish, and they aren’t guaranteed they will get the money back. This essentially describes a gift.

 

 

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