I am expecting commision of nearly $5mil from a Ps3 stock deal. How would I go about properly excepting the money without getting auditted? How do I explain my new found income and so on?
2007-04-07 09:23:41 · 6 answers · asked by Natedaniel B 1 in Business & Finance ➔ Taxes ➔ United States
Hello, Nate! My honest answer to you is this: if you're getting almost $5 million from ANY source, you can afford to hire a full-time tax professional to help you with tax advice, planning and preparation. If you go to a CPA or an EA, they can not only advise you on how to treat the income, but they would also be able to personally represent you before the IRS in the event that you DID get audited.
The relatively small fees you pay a financial pro would likely pay for themselves in tax savings. The link below gives some tips on how to go about finding one. Good luck, and congrats on your commission! :-)
2007-04-07 09:29:32 · answer #1 · answered by Anonymous · 4⤊ 0⤋
$5,000,000 is well into the 35% tax bracket. That is a potential $1.75 Million in taxes. If my INCOME was anywhere close to your TAXES, I would be interviewing CPAs, attorneys, and financial advisers. The best advice you will get from Yahoo Answers is don't ask Yahoo Answers. I think I'm the 3rd or 4th to give you that advice.
2007-04-07 12:44:10 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Congratulations. You can now afford to hire an accountant, and you should do so immediately. Not only will he/she handle your taxes (it will be a capital gains tax, if this is a stock sale), they will help you manage that money. Statistics show that people who are unused to wealth and who receive a sudden windfall are extremely likely to squander it within a very short time.
Accountants can be crooks, too; so check references and hire a good one. Mine has saved me thousands and he only costs me hundreds.
2007-04-07 09:32:46 · answer #3 · answered by hagakure 2 · 1⤊ 0⤋
Call your accountant. A person with as much as you claim to have or are getting will also have an accountant who has all these answers. I make a LOT less and have my own accountant who handles all my taxes, interest, houses, etc.
2007-04-07 09:30:37 · answer #4 · answered by HeavenlyAngel 3 · 2⤊ 0⤋
wow nate your my hero. 5 million in comission and you want my advice?
2007-04-07 09:41:39 · answer #5 · answered by bigdonut72 4 · 2⤊ 1⤋
liar
2007-04-07 09:48:16 · answer #6 · answered by Yep 2 · 1⤊ 1⤋