Profit share from wind farm co-operative

Profit share from wind farm co-operative

Didn't find your answer?

A client has received a profit share from a windfarm co-operative they invested in.  I have never come across this before.  Is this taxable as savings income on their personal tax return?

Many thanks

Replies (2)

Please login or register to join the discussion.

avatar
By [email protected]
02nd Jun 2015 08:46

Not interest
If its a profit share how could that can be treated as interest income. I would treat it as dividend income

Thanks (1)
Stepurhan
By stepurhan
02nd Jun 2015 10:26

Nature of agreement?

The investment aspect does make it sound like dividend income. However, it could be a trading partnership or conceivably a rental arrangement (if they have simply invested in land leased to someone else to build the actual wind farm). You need to see the paperwork.

Thanks (1)