GREY:LTTGF - Post by User
Comment by
Boolishon Oct 01, 2017 5:09pm
164 Views
Post# 26764361
RE:RE:check swaps
RE:RE:check swaps
Said company writes you a cheque for say $20,000 as a 'consulting fee' It becomes a deductible expense for said company. The person who got the $20,000 then writes the cheque back to the company as an investment in the PP. The person who benefits has to claim the 20k as income. Assuming one were in a 50% tax bracket the creative accounting cost on the PP is basically whatever the tax bill was on the initial consulting fee. Hard money vs soft. No clue if that went on here....and I'm not always opposed to it if it was done to accommodate the right names in the deal.