Million Dollar Deal

[Peter John Ross]

Here's a little video blog on what happens with a million dollar movie deal http://www.youtube.com/watch?v=JLwk8iIqwz4

 

[BRANDON JAMESON]

WOW!

Well said and produced, Sir Peter.

BRAVO!

 

[Trent Lillehaugen]

The tax portion of the video seems very over simplified. It sounded like you where treating the profits of the film as normal individual income. I don't know if that is true or not (although i would assume you would actually have a production company set up and in that case individual tax codes would not apply).

However, if you assume it is normal income your math was way off:

The US tax system is graduated - you don't pay your highest tax bracket on all your income (http://en.wikipedia.org/wiki/Taxation_in_the_United_States).

Using just the standard deduction and assuming someone is filing as a Single person in 2013, the take home on $235k would be more like $175. Of course, it could be higher if you were able to itemize your deductions (assuming they were more than the standard deduction of $6100) or put some money into a pre-tax retirement plan, etc.

 

[Terry VerHaar]

As Trent pointed out, if accounting is your day job, you should definitely quit it!! lol