I managed to raise 100k on a gofund.me campaign to teach a hands on electronics repair workshop. This amount lets me do workshops at least twice a month for the next 3+ years. Since I received this funding this year, do I pay taxes on this 100k this year?

But, since I haven't done the class in the future yet. I can't write off expenses for the future. I'm not sure how taxes work in this case as this is technically funding for the future and I don't know what my real expenses are yet. How do you space this earned income into future years?

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    Is this a non-profit venture or a for-profit business? That's probably the best place to start. – Keith Feb 23 '18 at 19:15
  • Oh this is for new york and yes its for a business. I have an LLC that I file together with my personal taxes every year. – Patoshi パトシ Feb 23 '18 at 20:01
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    if something like this happens, it should go in to a corporate entity. that entity then pays for things, pays your LLC, and so on. – Fattie Feb 23 '18 at 20:49
  • duplicate ? money.stackexchange.com/a/15527/41786 – Fattie Feb 23 '18 at 20:50
  • @Fattie: LLC is passthrough for tax by default but can elect to be treated as corporation. OP isn't clear on what 'fil[ing] together' means; that could be 1040 + 1120[-S]. Although it would matter here only if the corporation is using accrual accounting, which is not automatic or generally required. – dave_thompson_085 Feb 24 '18 at 1:43

Go see an accountant.

Not an income tax service, not your buddy who does taxes on the side, an honest-to-goodness CPA who works for small businesses.

There are too many unknowns to get a useful answer from this crowd.

  • Do you have ongoing expenses (i.e. rent for a shop)?
  • How much equipment do you own and what do you have to purchase?
  • Do you owe specific goods or services to the givers?
  • Are the givers deducting the donations from their income?
  • Do you already have known plans and/or commitments?
  • Do you have a regular schedule or is it unknown at the time?
  • Are you paying yourself a salary or paying yourself as training is delivered?

... and so on.

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Oh this is for new york and yes its for a business. I have an LLC that I file together with my personal taxes every year. –

Sounds, to me, like your business just received $100,000 in revenue. Better get to work.

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