Discussion:Paid business loan as divorce settlement
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(Difference between revisions)
| Revision as of 01:44, 15 May 2008 Riley2 (Talk | contribs) (The interest por) ← Previous diff |
Revision as of 03:58, 15 May 2008 Bean (Talk | contribs) (Sorry Riley2...w) Next diff → |
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| {{ForumReplyPost|UserID=Riley2|Date=15 May 2008|Text=The interest portion of the payment is deductible as interest.}} | {{ForumReplyPost|UserID=Riley2|Date=15 May 2008|Text=The interest portion of the payment is deductible as interest.}} | ||
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| + | {{ForumReplyPost|UserID=Bean|Date=15 May 2008|Text=Sorry Riley2...when I mentioned business interest above I didn't mean interest vs. principal but interest as in a right or titlement to the business share. He took out $250k BUSINESS loan and paid her off $50k, could that $50k be considered business expense (not sure yet what category) or personal (distribution)?}} | ||
Revision as of 03:58, 15 May 2008
Discussion Forum Index --> Advanced Tax Questions --> Paid business loan as divorce settlement
Discussion Forum Index --> Tax Questions --> Paid business loan as divorce settlement
| 14 May 2008 | |
| Husband and wife getting a divorce. Husband is 100% shareholder of an S-Corp business, started 20 years ago. Wife is threatening to sue for the business interest since she has been involved in it for the last 15 years, so a monetary settlement is agreed from both sides. Husband took out business loan and a portion of it pays her directly, is her payment portion considered business expense (he said had to do that or will be out of business) or personal (in which case it's a distribution?) I would say it's the latter, anyone disagree? | |
| 15 May 2008 | |
| The interest portion of the payment is deductible as interest. | |
| 15 May 2008 | |
| Sorry Riley2...when I mentioned business interest above I didn't mean interest vs. principal but interest as in a right or titlement to the business share. He took out $250k BUSINESS loan and paid her off $50k, could that $50k be considered business expense (not sure yet what category) or personal (distribution)? | |
