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Updated over 1 year ago,
Should Franchise Tax Board (FTB) payment be factored into my Net or not?
Hi All!
I recently closed a deal with my parents- I found the deal and project managed it and the deal was that we would split the net 50/50. I was not calculating the FTB in my estimates- so the question is- should I ask to get my 50% before the FTB? Obviously this is what I would like because it would be a $10k difference to me, and I feel it is justified as it technically is them paying their tax as I will be asked to be paid tax on my earnings and I won't ask them to foot the bill.
Another option- as this FTB payment is a withholding- ask that if there is a refund at the end of the year I recieve 1/2 of the refund.
What is the right way to go about this?
Thanks in advance,
Erik