Ollie Hamiel: No. Corporations are considered to be separate legal entities. Corps even file separate tax returns. Your ex is an employee of that corporation. The cars he drives may be owned by the corporation. How he can get away with that can be answered by someone else.
Luke Creitz: If it is an "S" corp it will show up on his personal return. Otherwise, no. He is probably letting the corp illegally pay for his life style. Since he owns the corporation, you are entitled to have access to the corporate records during your divorce. He won't give them up without a subpoena, I would imagine. You could also take this up with the Children and Family Services in your area.
Carolin Southers: The law varies from state to state however in general, corporation is usually separate entity and even if it clears millions of dollars a year it has nothing to do with personal income.In some states however, i.e. a person lives in a luxury villa and drives a luxury car whi! ch he enjoys from the company free of charge, this benefit will be assessed as an income based on how much rent would villa fetch on open market and for how much such a vehicle be rented or leased for.Example:Villa = $5,000.00 a monthMercedes = $1,500.00 a monthTotal monthly benefits worth $6,500.00 Total annual income $78,000.00But then again this depends on what state, province or country you live in. Your question is very much suited for a lawyer, not for here....Show more
Lorelei Lilburn: it is complicated. a big corp., NO...that would be separate. A small 's-type' corp would. Just ask your lawyer to find out.
Coleen Carignan: i believe it goes on schedule c, schedule se
Miguel Densley: i do not know much about tax , but i think i am right in saying , corporation tax is very complex but he would have to declare what he has earned in the last financial year, you could go and enquire at you local tax office.
Inell Riesgo: Only if his corporation is! a Subchapter S.Otherwise the corporate returns are not associ! ated with his personal ss number.I will bet that the cars he drives are company cars, not his. If you really think he is hiding assets and income to keep from paying appropriate support, you need to get a good lawyer that can get a forensic accountant to uncover this. But, I will bet it will be extremely expensive....Show more
Jude Kennelly: If it's an LLC, most of the time it would. If it's an s-corp it would. But other types of corporations would file their own corporate tax return, and only a portion of the profits that's distributed to him, or salary the corporation pays him, would show on his personal taxes.The judge should be able to recognize that he isn't living the lifestyle he is on $1900, and judges are pretty used to people lying to them....Show more
Ayesha Genova: If he gets caught, it'll cost him a lot more than the back child support. If he was man enough to father the children, he should be man enough to support them.
Sharie Sommerville! : To answer your question, corporate income does not get reported on a personal return. However...If he's using corporate assets for personal use and intentionally underpaying himself a salary from a corporation he owns, he is committing fraud. Depending on how much profit the corporation shows, he may be paying more tax to the feds than he would by charging off a reasonable salary as a business expense and paying the lower personal tax rate, but he would more than make up the difference by lying about his true income to avoid paying legal obligations keyed to income. If his business is successful but he is reporting almost no personal income, I would call the IRS tax fraud number AND report what you suspect to the people who enforce child support payments....Show more
Coleman Deliberato: You have a legal issue here where the answer could be yes or no and should go back to your divorce attorney for assistance. This is not a do it yourself project. He may not be hidi! ng income from taxing authorities, but may be arranging his affairs in ! a way that harms his children. A court may order that income from a closely held corporation be taken into consideration in determining how much child support he should pay and pierce the corporate veil to get it....Show more
Kelly Bistodeau: ... only that portion of his personally income that he earns from the corporation.From what you told us, I'd say that he has a good tax accountant or he is cheating on his taxes.
Lady Laflin: No. Corporation is a separate juridical entity, and has it own income tax return (ITR). But the earnings that your husband will get from the corporation, are taxable and thus should be reported in his ITR. It may be in the form of salaries or as dividends. But the corporation might not declare dividends which may explain why his ITR shows low income, and the car can be named under the corporation to avoid personal income tax or fringe benefit tax.
No comments:
Post a Comment