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    justme1981's Avatar
    justme1981 Posts: 1, Reputation: 1
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    #1

    May 20, 2014, 01:23 PM
    Cash Payout
    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    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.
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