Should Franchise Tax Board (FTB) payment be factored into my Net or not?

Should Franchise Tax Board (FTB) payment be factored into my Net or not?

Member since 2019 · 11 posts · 1 vote

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

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