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Re: Deposition Deposits

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  • Avatar ASingh86 
    Participant
    Status: Physician
    Posts: 21
    Joined: 05/06/2018

    Hello,

     

    I am a sole-proprietor/independent contractor and I have a separate business checking account in which all my clinical payments come in and I pay myself by transfer to my personal account every month.

     

    I will be getting paid for a medical deposition and was wondering which account should I be depositing this money into.  Business checking or personal checking?  Does it matter?

     

    Any help would be greatly appreciated.

     

    Thank you

    #245089 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2805
    Joined: 01/03/2017

    Untraceable foreign bank under a shell company.

    Do you plan on doing this often? If so, I would get another separate account. If it’s a one-time thing, I would deposit it into my personal account. Just make sure you properly declare it.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #245092 Reply
    White.Beard.Doc White.Beard.Doc 
    Participant
    Status: Physician
    Posts: 936
    Joined: 02/06/2016

    Normally the payment should come with a 1099 to you at the end of the year.  You would declare the income and deduct any expenses, so you need a system for that if this is an ongoing thing.  An easy way to do that is to deposit the check into your business account as business income from your practice of medicine as a medical expert giving a deposition.

    If it is a one time deal, then it is less of a concern, but even if you deposit it into your personal account, you are required to declare the income on your annual tax return.

    #245099 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2483
    Joined: 05/01/2017

    As long as you pay the taxes indicated by your 1099s I don’t think the IRS cares at all.

    I have ~15% comp over my W2 base every year as an IC, at the suggestion of my accountant I just run it all through my personal checking.

    If you aren’t paying your taxes a separate checking account isn’t going to help you.

    The other thing is that if you are doing depositions you shouldn’t have many expenses to deal with.

    #245106 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4405
    Joined: 01/08/2016

    It does not matter.

    #245112 Reply

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