Settled a lawsuit. We had a business partner break up that resulted in a nasty lawsuit. Instead of going through a long litigation I opted to just settle and give a year of monthly payments as litigation would have been more expensive. How would you categorize the monthly payments to the ex-partner?
@mikensayuri This is not advice. I am not your licensed tax/financial/legal professional. We don’t have the entire picture and I don’t suggest posting it here as this is a public forum. Stessa is not designed to handle a robust transaction involving a change in equity distribution between partners. This may be more of a balance sheet issue come tax time versus a revenue and expenses issue. Please consult your tax professional.
If I had to use Stessa to record this, I would pick the following category: “Management Fees > Fund Management”. It’s unique enough to separate from everyday transactions.
-Tom