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WiseOwl58
WiseOwl58, Attorney
Category: Business Law
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If a business owner takes money, say $10,000 from their business

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If a business owner takes money, say $10,000 from their business account, which is claimed as income on the business return and appropriate tax liability paid, and deposits it into a personal account, without claiming it as a deduction to the business, is there any personal tax liability on that deposit? Would there be any difference in the answer depending on whether the business is a corporation, s-corp, LLC, or partnership?
Submitted: 4 years ago.
Category: Business Law
Expert:  WiseOwl58 replied 4 years ago.
It would be treated as a dividend to the business owner. If it is an LLC or an S-corp, there is no tax implication, since the profit and loss is all passed through to the owners personal tax return. If it is a C-corp, then it would be taxable to the owner as a dividend, and reported on Schedule A of the 1040 tax return.

Good luck to you. I wish you all the best.
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Expert:  WiseOwl58 replied 4 years ago.
Please review the answer I have given you and rate it a 3, 4 or 5.

Please let me know if you have any other questions. Just put my name---Wise Owl 58--- in the first line and I will get it and respond.

All the best.
WiseOwl58 and other Business Law Specialists are ready to help you
Expert:  WiseOwl58 replied 4 years ago.
Please review the answer I have given you and rate it a 3, 4 or 5.

Please let me know if you have any other questions. Just put my name---Wise Owl 58--- in the first line and I will get it and respond.

All the best.
Expert:  WiseOwl58 replied 4 years ago.
Christina:

Please review the answer I have given you and rate it a 3, 4 or 5.

Please let me know if you have any other questions. Just put my name---Wise Owl 58--- in the first line and I will get it and respond.

All the best.