It's that time of year - March Madness! I mean tax season... We originally posted this article for the 2016 tax year but it is still just as pertinent today. If you read last year's article, read the "What's New" summary before deciding whether you need to read further. Otherwise, you might find it helpful to read the entire post.
Note: I am still working on our 2017 tax return. When I complete it, I'll edit this blog post to show the actual tax savings attributed to the "Overlooked Deductions." You can see our tax savings from 2016 here.
I thought a board game business was about playing games...
I am addressing individuals who file their board game publishing business taxes on Schedule C
with their personal tax return. I will start with some of the most valuable deductions I believe are often overlooked (in order of the largest tax savings for us in 2016) and then move on to specific line details.
Please note that I am not an accountant and what is listed below is my own perspective based on reading IRS documents and soliciting professional advice. I am happy to help answer any questions via this blog or email (games [at] piecekeepergames.com) but consider hiring an accountant as needed.
- Very few tax law changes
Very little changed with US tax laws between the 2016 and 2017 tax years that impacts small board game publishers. However, there are larger changes looming for the 2018 tax year.
- Removed non-taxable gifts
After further consulting legal advice, I no longer believe any Kickstarter pledge amounts constitute non-taxable gifts. So you need to report all the funds received from Kickstarter as revenue.