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Tax Law (Questions About Taxes)/Buyout of interest in business as a result of divorce



My question is related to payments I am receiving from my ex husband. I receive child support, alimony and a monthly payment on a buyout. I know that the child support is not reportable income and that the alimony is reportable as income. My question is whether the buyout payments I revieve are taxable income. The payments that I revieve are the result of a settlement agreement in our divorce. The total amount is being paid in monthly installments over 4 years.They are for me releasing my interest in a business that we owned together during our marriage and which he still owns.

Thank you for your time.

This is really a question of state law.

If you are deemed to be an owner, you might have income.

Otherwise, it is tax free settlement of property among former spouses and tax free under irc s.1041

What state are you in?

Did you also own the company?

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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