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Join Date: Feb 2006
Location: Maryland
Posts: 22,299
Over $10k you are supposed to have a signed note. In practice this doesn't matter (and isn't even the issue you are asking about; the note issue is an interest thing).

Just move the money back and be done. In quickbooks you show the deposit as a loan from you and code the check/transfer back as a reduction in that loan. Honestly not a big deal.

What MAY be a big deal however is being an LLC and paying SE tax on your entire net income. I'd certainly defer to a CPA who has experience in the entertainment industry but it's POSSIBLE that you could be an S corp and only pay SE tax on the salary you pay yourself (which, to be effective would be less than the total draws you take in a year).

IRS may frown on this because you personally are generating all the income but it's worth a call to a LOCAL to you CPA that handles other writers. In fact i wouldn't be surprised if IRS has already issued guidance on this concept for writers.

Having said that however you do want to be weary of PSC rules but a competent industry experienced CPA will know the score on that as well.
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Well i had #6 adjusted perfectly but then just before i tightened it a butterfly in Zimbabwe farted and now i have to start all over again!
I believe we all make mistakes but I will not validate your poor choices and/or perversions and subsidize the results your actions.
Old 03-28-2008, 10:14 AM
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