Legal Question in Entertainment Law in California

Reporting Advance Payments On Film Production
My question is about reporting income from an advance payment on a film production. XYZ, LLC expects to have received $2,000,000 at 12/31/2000 (its first tax year end)in excess of what it will have spent on production costs. They will produce a total of 100 videos in 2000, 2001 but have recieved full payment, in advance, in 2000. How can XYZ, LLC account for the advance payment in order to minimize the tax consequences to them on their 2000 income tax return.

Asked on 11/27/00, 9:03 pm

Michael Cortson Law Office of Michael D. Cortson, Esq.

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Re: Reporting Advance Payments On Film Production

Who is your accounting firm? This should have been worked out from the beginning. I need much more information to begin to analyze this situation.

Dr. Michael Cortson

attorney at law

Answered on 11/29/00, 6:39 pm

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