so kickstarter FAQ mentions the tax considerations (and lack of) for BACKERS, but what about for the person you contributed to
For instance, take a project like OUYA all funds went to Boxer8 Inc. What are the tax consequences on them receiving that money?
I'm mainly curious about the federal government's IRS, don't care about states. "Tax attorneys" can be just as incompetent as random internet advice, so just state what you know and give a credible source for further evaluation.
Do they incur no tax liability? is it ordinary income tax? something else?
clearly getting 8 million dollars for your corporation without tax would be convenient, but I think it is unlikely that this does not incur tax liability