Small business dividends/distributions My wife and I were married in 2013 and will be filing jointly this year. She is in the process of selling half of her restaurant to her business partner. She is still technically a co-owner/operator and has been receiving monthly dividend (distribution?) checks for the buyout, until she receives their agreed-upon price, but she doesn't receive any other hourly pay or salary. She now works a different job in another state.
How would we report this buyout money? She isn't sure either. They always had their "tax guy" handle that side of things but we don't live near him anymore, and I'm not even sure if he advised them on this buyout strategy.... It was her business so I didn't want to get too involved, but now I'm a little nervous for this upcoming tax season since she couldn't answer my questions. |