If I made my first $1,000,00.00, what is the best way to minimize my taxes? 4 Answers as of May 10, 2013

I made $1,000,000.00 on a real estate sale this year, I set up my company as a LLC, what is the best way to minimize my taxes? I paid a referral fee of $250,000. I was told to have him fill out a 1099 so as to not pay taxes on the $250,000, is this correct as well?

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Givner & Kaye
Givner & Kaye | Bruce Givner
There is no one best way to minimize taxes on a $750,000 windfall. It depends upon what you might make next year. It depends upon how much you need to maintain your standard of living. A defined benefit pension plan is the first structure that we would help you explore, but there are perhaps a half dozen other structures to consider.
Answer Applies to: California
Replied: 5/10/2013
Robert E. Giffin | Robert E. Giffin CPA
You need to speak to a Tax Attorney or a reputable CPA.
Answer Applies to: Ohio
Replied: 5/10/2013
Kokish & Goldmanis, P.C.
Kokish & Goldmanis, P.C. | Bernard H. Greenberg
No, that is not correct. You should contact an attorney or CPA specializing in income tax matters.
Answer Applies to: Colorado
Replied: 5/10/2013
Arthur H. Geffen, P.C.
Arthur H. Geffen, P.C. | Arthur Geffen
You really don't give enough information to give you concrete advice. If your LLC is a single member LLC the income you have will be reported on a Schedule C on your personal income tax return. If there is more than one member and the LLC elected to be taxed as a partnership, you will receive a K-1 with your distributive share of the profits and losses. To get to the heart of your question, run don't walk to an experienced tax attorney who may be able to assist you to setup your affairs to minimize the income taxes that you will be liable for. The $250,000 you paid as a referral fee is income to the person you paid it to and you will need to give him a 1099 at the end of the tax year. The referral fee is all income to him.
Answer Applies to: Texas
Replied: 5/10/2013
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