I am trying to secure funding for a movie under IRS section 181 that allows individuals or business's with PASSIVE income to write off 100% of their investment. Can I pay a generous referral fee?
You can pay a referral fee. The question is whether teh lawyers and accountants can ethically receive the referral fees. I believe you will find that the answer is for both professions that the answer is "yes" as long as they fully disclose the receipt of the fee. However, i think that you will also find that neither the lawyers nor the accountants are going to want to receive referral fees for advising a client to invest in a movie. Nothing good is going to come from that for the professional. The professional is better off sticking with what he or she is good at. At most if a client invests $100,000, how much of a referral fee will you pay? $5,000? Great. So if the deal goes poorly, the client sues for $100,000. And the professional loses the client. Not a good result for the professional.
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