it depends. According to Super Turbo Tax Agent ThomasM125, in this link, these payments are not taxable. My question is, are you preparing a K in your business program and looking to expense them? If so, what type of business entity do you have? Is it an S-Corp or Partnership?
in addition, ThomasM125 is referring to reporting these as a schedule K in the business return. Schedule K-1 is a form that is distributed to the shareholders to determine what they will report on their individual tax returns.
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