it would be pre-tax dollars. In the USA, (very simplified) you pay taxes on profit. To simplify, I will say he makes $1,000 a month after Patreon fees.. So if he spends $100, a month on renting an office space... and hires out $300 a month to contractors as help (they pay their own taxes). Then he is making $600 a month that he has to pay taxes on. (Let's say 20%). So he pays $120 in taxes and pockets $480. (This is super simplified, so any CPAs put there forgive me...)how does taxation works from this? It cant be classed as a gift? as he produce a product depending on how good the "gifts" are, but ofc it depends from country to country. We used to be able to play online poker here and give our government nothing so they changed the laws, they must have their fingers in everything, at least here
and I assume he have people helping him that he then pay? do they count as employees? so he must tax their payment as well?
I really doubt he can save all that money each month....not saying he cant save some, but some people seem to think it is "free" money
So I guess, whatever he is making per month on patreon, cut it in half and that is his take home pay...