Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Thanks for those posts. foo1bar did sort of get at the point that I was thinking of. Namely, one could imagine that if I pre-paid the lawyers this year it would reduce my taxable portion of the revenue this year (and avoid - again in theory - having to loan money to the company next year). I don't think I can really pre-pay (though I will look into it) so I am wondering what the next best thing is. Buy bullion in the name of the company? :)

You're missing the point. If you think you'll have to lend the Corp money next year if you pay the lawyers then, you'll also have to lend the Corp money if you pay now. Put differently, if the money is in the Corp now, it can be there next year. The distribution of profits reported on the K-1 does not represent cash taken out of the Corp.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.