Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-22-2014, 02:34 PM
k8tnaz
 
Posts: n/a
Question Divorce and Busines

I have a friend who just got the final divorce decree. He has to pay 70% of his income to his ex, leaving him $1400 a month to survive on and raise his teenage daughter. I'm trying to give him some hope and thought of this. He has to pay her half of the value of his company. Is this an expense that he pays through the company (as it is afterall, a business expense) or is this going to have to be paid through his personal account. The company doesn't have a lot of extra per month, but certainly more than his personal account.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 09-26-2014, 08:18 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
Quote:
Originally Posted by k8tnaz View Post

#1;I have a friend who just got the final divorce decree. He has to pay 70% of his income to his ex, leaving him $1400 a month to survive on and raise his teenage daughter. I'm trying to give him some hope and thought of this. He has to pay her half of the value of his company. Is this an expense that he pays through the company (as it is afterall, a business expense) or is this going to have to be paid through his personal account. The company doesn't have a lot of extra per month, but certainly more than his personal account.
Alimony(personal expense) is taxable income for the recipient and is a tax deduction for the payer;your bud who pays alimony reports this amount as a deduction on Form 1040 Line 31.
If you own your own business and need to use funds in your business account to cover personal expenses, it's tempting to simply issue checks from the business account to cover the personal expenses, but it's not a good idea to do so. Depending on the structure of your business, using a business checking account to cover personal expenses may negate the protection the legal structure of your business offers.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Injured Spouse During Divorce cyborggold For 2013 3 03-29-2014 02:16 AM
capital gains/divorce yellowjacket8 Capital Gains 1 02-26-2014 01:11 AM
mortgage interest after divorce jkb67 Divorce Tax Issues 1 02-24-2011 08:46 PM
Going through a divorce...filed extension cwfrad Divorce Tax Issues 0 10-17-2010 10:58 AM
Divorce Tax Quaqmire of Many Questions ripples Divorce Tax Issues 0 11-23-2008 08:56 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning