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snowboarder · 12-13-2009, 04:56 AM

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Hi,

I opened an LLC this year to produce a short film. I was funded just enough money to shoot the film and everything was used EXCEPT a license fee I owe.

My question is, if I cut a cashiers check out of the business account for the LLC before the end of the year which will empty the account... in essence zeroing out any "profit" would I still owe any taxes on the LLC?

It sounds right but also doesn't sound right.

Thanks for everyone's help.

Skyhawk · 12-18-2009, 06:37 PM

See a tax professional with experience in the accounting and taxation of the film business. The business of film production, distribution, licensing, etc. is a specialty item for taxation and accounting. Generally the total costs are capitalized and expensed as the film produces income. Again, see someone who is experienced with this industry.