justme1981
May 20, 2014, 01:23 PM
I was in business with my spouse and we have split, so I was paid out in cash, $10K in 2013, do I have to claim that on my personal taxes as income?or is it some sort of dividend?
AtlantaTaxExpert
May 20, 2014, 02:43 PM
It depends on the nature of your business. If it was a corporation (subchapter S or C), the payout could be considered to be a dividend or a dividend and repayment of capital.
If it was a partnership, then then payout is partially income and partially as repayment of the initial investment.
It is was a sole proprietorship, it again is income or income plus repayment of capital.