BizSugar.com › Taxes › Should You Worry About Crowdfunding Tax?

“Funds raised by a taxpayer through (reward-based) crowdfunding activities will likely constitute business income to the taxpayer. Correspondingly, the CRA has clarified that in their view expenses relating to such crowdfunding activities should generally be deductible by the taxpayer in computing its taxable income…The CRA’s statements clearly leave the possibility open for funds received in the context of equity-based crowdfunding to be treated as a capital contribution.”