If the father of a child has his own small business (LLC), does his monthly business expenses count toward his income?

Question

Or does a certain percentage count? He pays himself very little and writes off everything thought the company such as car, insurance, phone, etc including our dinners when we used to go out.  Is there a Florida law regarding this?

Rand Scott Lieber · Answer

Your question is a little complicated but the short answer is yes, anything that reduces his normal living expenses counts as income, regardless of whether he writes it off as a business expense. Speak with a local family lawyer for more specific advice.

Erik A. Perez · Answer

This is a good question to also ask your accountant. The answer may depend also on whether the LLC is taxed as an S-corporation. Generally, if the LLC is an S-corporation (many are), the owners will be taxed according to the salary that is paid and any distributions. The expenses of the company may be used to offset personal gains subject to the tax code requirements.

Terrence H Thorgaard · Answer

This is a family law question and not a Florida question of tax law (as Florida doesn't have an income tax).   Accordingly, I have agreed with Mr. Lieber.

Q: If the father of a child has his own small business (LLC), does his monthly business expenses count toward his income?