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CD Baby is only a line merchandise in your dad’s company’s tax return.» stated the accountant. «You didn’t know that your dad’s firm owns ninety p.c of CD Baby? You’ll be able to simply make it an alias in your Hit Media account». «Oh, you don’t have to file. The only means was to pay full market value, as determined by an out of doors valuation firm. Yes, it looks like the money Derek borrowed eight years earlier was completed by promoting 90% of his company to his dad’s company. Four yr later, CD Baby was doing very well: a couple of million dollars in sales, half one million in net income, and Derek paid his dad back the money he borrowed. Derek called up his accountant in January to ask if they’ll file the taxes early that year. Which ended to be $3.3 million dollars. And business process management all these years, CD Baby wasn’t his company.
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