Crowd Bonds: Tax Advantaged P2P Lending

Another spin on crowdfunding: “crowd bonds.”

Downing Crowd is a crowdfunding peer to peer lending platform that has raised £1.7bn from 35,000 investors seeking to invest in businesses that make a profit and a difference.

The borrowers are vetted, the loans are collateralized, interest rates run from 4% to 7% and since it’s a government Innovative Finance ISA, interest earned is tax free for income or capital gains.

Best of all, the manager’s annual monitoring fees are contingent on investors getting their capital and interest back. They claim no bad debt after loaning out over £18 million.

https://bdaily.co.uk/articles/2018/01/04/crowdfunding-platform-downing-crowd-seeks-to-raise-1-82m-for-oakman-inns-acquisition

https://www.downingcrowd.co.uk/

Advertisements
Posted in accredited investor, balance, Banking, Banks, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, Small Business, technology | Tagged , , , , , , , , , , , , , , | Leave a comment

Potential Failure of Rape Preventing Underwear Crowdfunding

Here’s another good crowdfunding idea that may be in meltdown. In March 2016 AR Wear reported “the transition from prototype to manufacturing process is presenting challenges in more areas than we had imagined.”

So, its more than 2,000 backers who donated almost $55,000 may never see AR’s  women’s underwear that is advertised toprotect against sexual assault.

Apparently, “AR Wear, which has devised underwear constructed with fabric resistant to pulling and cutting, and an internal skeleton to prevent removal by anyone other than the wearer.” …while at the same time being discreet if not attractive. There’s been radio silence since.

Not sure why this company just received press coverage yesterday??

https://www.indiegogo.com/projects/ar-wear-confidence-protection-that-can-be-worn#/updates/all

Posted in accredited investor, balance, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Congress Has Citizens Fighting Each Other To Crowdfund Their Healthcare

With high medical expenses for catastrophic illnesses being the single major cause of personal bankruptcies in the U.S., many sick people are turning to crowdfunding to help pay their medical bills.

But Mother Jones suggests that crowdfunding may be “fueling the inequities of the American health care system, not fighting them. And they are potentially exacerbating racial, economic, and educational divides.”

And those that have a better education, a better social network and higher income tend to receive higher donations than those that don’t.

Moreover, “(r)acial disparities also appear to be reproduced on crowdfunding sites, in large part because racial and economic inequalities often overlap.”

With the cutting of funding and support for the ACA, Congress now has citizens fighting each other to afford healthcare.

http://www.motherjones.com/politics/2018/01/go-fund-yourself-health-care-popularity-contest/

Posted in balance, Charity, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, Funding Portals, Legislative Intent, review, technology | Tagged , , , , , , , , , , , , , , , | Leave a comment

Local Guys Crowdfund For Sleeping Bags For The Homeless

Two local Montgomery County guys have crowdfunded their self designed sleeping bags to give to the homeless.

And now they are challenging celebrities to help out with the project. Using the hashtag #100sleepingbags, the clothing line designers posted “Tyler Perry, I’m going to send you five sleeping bags. I challenge you to find five people that are homeless and hand them each a sleeping bag.”

On the GoFundMe page, a $17.50 donation buys one sleeping bag for those who can’t or won’t come from the bone biting cold weather that is sweeping through the Washington DC metro area.

As of today, they have just barely passed their goal for 100 bags.

https://www.gofundme.com/4qeh534

Posted in accredited investor, balance, Charity, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Jobs, review, Small Business | Tagged , , , , , , , , , , , , | Leave a comment

Crypto Currency Tax Matters

If you’ve hopped onto the cryptocurrency train, you should be aware that the IRS is all over this.

So, if you’re paying employees in Bitcoin (or alts), you must report it on a W-2 and withhold just like dollars (except you have to withhold in dollars).

Investments in crypto are treated as property and when sold, you will have a capital gain or loss, also reportable on your tax return.

Any earnings in crypto must be counted as ordinary income based on “the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars (or into another real currency which in turn can be converted into U.S. dollars) at the exchange rate, in a reasonable manner that is consistently applied.”

And, remember the IRS takes only U.S. dollars, not Bitcoin.

https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21

Posted in accredited investor, Banking, Banks, CFTC, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, technology, VC, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , | Leave a comment

South Korea Considers Crypto Regulation

Fox Business is reporting: “New proposed legislation in (South) Korea will ban the use of anonymous cryptocurrency accounts starting next month and prevent banks from providing settlement services for unidentified digital-currency trades on bitcoin exchanges.”

This follows the shut down and bankruptcy of YouBit, a cryptocurrency exchange in Seoul that was hacked and lost 38 billion won ($35 million) in digital currencies.

The mania can be illustrated by the example of Long Island Iced Tea changed its name to Long Blockchain Corp. Its stock price soared almost 300% on the news of the name change, with more than 15 million shares trading on that day, compared to the average daily volume of about 170,000 shares, according to Bloomberg.

It’s only a matter to time before the government crack down.

http://www.foxbusiness.com/features/2017/12/28/south-korea-considers-shuttering-bitcoin-exchanges-in-crackdown-on-cryptocurrency-trading.html

Posted in accredited investor, balance, Banks, Broker dealers, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, technology, VC, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , , | Leave a comment

Putin Plans to Control Crypto-Currencies

Vladimir Putin, the savvy Russian President (for life?) has told the legislature that he wants to regulate crypto-currencies.

The Duma is working on a law now that will deem Bitcoin and its alternatives as property for tax purposes, require Initial Coin Offerings to register as crowdfundings and limit the amount that a Russian citizen can invest.

The word from the top is also to control crypto mining and the Ministry of Finance is planning to issue a “crypto-ruble” backed by the State’s oil reserves.

(Not a surprise if you believe that Mr. Putin wants to control everything, especially financially, that happens in his state).

http://247wallst.com/economy/2017/12/26/russia-setting-rules-for-cryptocurrency-miners/

Posted in accredited investor, balance, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, technology, VC, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , | Leave a comment