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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Family Law
Satisfied Customers: 117365
Experience:  Experienced attorney: Family law, Estate Law, SS Law etc.
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Following a discharge from a job at start of the year, a temporary

Customer Question

Following a discharge from a job at start of the year, a temporary motion to modify was filed due to a significant change that began a year or so prior. After some delays from the other party, we've finally set mediation for a few months from now (neither of us are represented by an attorney). So I'm filling out the financial affidavit and stuck on something.
The question I have is if, or how to report income on the FA for a new business I've started that's just ramping up.
I started a new business that's had a small amount of initial income the last few months. Taxes haven't been filed yet, and I still don't really know what the net will be until that time. Most likely at the end of the year will be when I know what the net income or loss will ultimately be, and I'll have some idea of what will eventually flow through to me personally, as it is an S Corp.
It seems strange to report this on the affidavit form when I don't really know what the actual income will be until the end of the year or next year at tax time.
Do I guess figures, submit those as "income" now, while they may not end up as profit? Or is this a matter for another potential TMM filing after those taxes are filed, once those figures have been established?
Submitted: 2 years ago.
Category: Family Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Under the statutes for support, they want you to list "income from any source derived," which would mean that any income YOU make would have to be declared. However, if your business is an S Corp, you have not derived income yet, you are using that money to support the business and not your salary. So at this point you are not deriving income personally from the S-Corp, the S-Corp is deriving money needed to operate the S-Corp.
Once you start taking proceeds from the S-Corp those would have to be declared on the FA.