I raised funds through a crowdfunding platform end of 2017 for a production of a web series in 2018. So, I'm responsible for the taxes on the 1099, but I also paid out money, above even what I raised, which I can't deduct until this coming tax year. I filed an extension, but, with the second deadline looming, I still haven't found a solution.
Sub-question: I read somewhere that if contributors do not receive anything in return, that portion of the funds raised can be considered a gift. I added it all up, and almost half of the money raised was raised through donors who did not select any incentive and, therefore, received nothing in return for their contributions. Could that be a way to mitigate the hit I stand to take?
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Basically, unless you use "accrual based accounting" (which is complicated and needs an accountant to set up) then you are a cash basis business. You report income when it is actually received, and expenses when they are actually paid, even if you are paid in advance for a job. A check you receive in 2017 is 2017 income. An expense you paid on 1/1/18 is a 2018 expense, even if your subcontractor or vendor did the work in 2017.
In your case, you will have more net taxable income in 2017 and less in 2018, but it should all even out in the end.
For the gift issue, I would defer to Critter#2 and maybe an accountant.
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