Crowdfunding - 0.2 CPE

Crowdfunding platforms have transformed how individuals and businesses raise money online. However, the tax treatment of those funds depends entirely on how the transaction is structured and whether contributors receive something in return.

Learning Objective

Distinguish between taxable and non-taxable crowdfunding transactions for federal tax reporting purposes.

Course Description

This nano-learning course reviews the federal tax treatment of crowdfunding transactions, including gifts, business income, charitable contributions, and equity-based crowdfunding arrangements.

Who Should Take This Course

Tax professionals, enrolled agents, CPAs, small business advisors, and preparers working with creators, startups, online businesses, or clients using crowdfunding platforms.

Why This Matters

Crowdfunding proceeds may be treated as taxable business income, non-taxable gifts, loans, or securities transactions depending on the facts and circumstances. Misclassifying funds can trigger audits, unexpected tax liabilities, information reporting problems, and compliance exposure. Understanding how the IRS and SEC view crowdfunding arrangements is essential for proper reporting and planning.

Author / Instructor

Lee T. Reams, Sr., BSME EA
Lee T. Reams, Sr. is an Enrolled Agent with extensive experience in tax preparation, representation, and advanced tax planning. He is known for helping practitioners apply complex tax rules in real-world client situations.

Course Details

This course qualifies for NASBA continuing professional education credit. CountingWorks, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Understand the Tax Rules Behind Modern Online Fundraising

Start Crowdfunding and learn how gifts, rewards, charitable contributions, and investment-based crowdfunding arrangements are treated for federal tax purposes.