Thinking of Crowdfunding Your Project?  Beware – the Taxman Cometh The IRS Office of Chief Counsel recently released Information Letter 2016-0036 in response to questions regarding the taxation of crowdfunding revenue. In it the IRS concluded that crowdfunding revenue is taxable to the extent it is received in exchange for services or property. Further, the IRS stated that crowdfunding revenues generally are includable in income if […]
SEC Issues C&DIs and Small Entity Compliance Guides for Crowdfunding On May 13, 2016, the SEC issued new Compliance and Disclosure Interpretations (“C&DIs”) on Rules 100 (Crowdfunding Exemption and Requirements), 201 (Disclosure Requirements), 204 (Advertising) and 205 (Promoter Compensation) of Regulation Crowdfunding.  Highlights of the C&DIs include the following: Information not constituting an offer of securities may be disseminated by an issuer prior to the... Continue Reading
What’s up with Crowdfunding? So far, not much (but a fix may be coming)

Posted By: Robert C. White Jr.

The SEC’s crowdfunding rules (under Regulation Crowdfunding) became effective earlier this week. From the legal and legislative perspectives this was a big day since it marked the effective date of one of the most heavily anticipated and promoted components of the JOBS Act. It is also the last provision of the JOBS Act to be... Continue Reading

The Equity Crowdfunding Rules: What You Need to Know The SEC’s equity crowdfunding rules finally go into effect this month almost four years after Congress passed the JOBS Act, requiring the relaxing of certain rules on raising funds. So what does equity crowdfunding actually look like? Here is a primer: Non-public US companies may raise funds on the internet from accredited and non-accredited investors alike … Continue reading this entry

By Charlene Schafer

Raising capital in the real estate context, whether through large-scale investment or by smaller, more focused means, can be an intricate, time-consuming and expensive process. Developers and others raising capital need to be mindful of various considerations when operating in this arena, depending on whether their investors are pension funds, private investment vehicles or individual investors.

Up until recently, investments in non-prospectus based real estate private equity vehicles by individuals was based on the use of the accredited investor exemption under the Securities Act (Ontario).  The accredited investor exemption permits the issuance of securities by an issuer … Continue Reading

AFM maintains €500 threshold for initial crowdfunding On 22 February 2016, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) announced that it will maintain the €500 threshold for the initial ‘crowdfunding investment test’ (crowdfunding investeerderstoets), which will apply to investors investing through crowdfunding platforms. In December 2015, the AFM introduced new regulations for crowdfunding platforms in the Netherlands … Continue Reading