Thursday, 9 October 2014

Last year my partner and I took $2000 out of the revenue of our mutually owned corporation and isseud it to ourselves as "profit share" to e...

Question

Last year my partner and I took $2000 out of the revenue of our mutually owned corporation and isseud it to ourselves as "profit share" to each other.

I am now doing my taxes for that corporation, and wondering if I have to declare this as a "commission" or a "dividend"? Orsomething else?



Answer

Federal income tax is not my forte but a payment of $2000 should be a simple matter to expense unless there's something else going on that you don't want to tip the IRS to.



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