Thinking About Loaning Cash to Your Business?
Are you looking to start a business, or is your current business in need of some cash? Maybe you can’t get a loan from a bank, or maybe you would rather not use a bank. What about lending some of your own money to your company? Can you do that? Yes, you can, but you’ll need to make sure you do it right.
The first thing to be aware of is the need to document your transaction properly. If you decide to loan your business cash in order to purchase more inventory but your company defaults on the loan then you might be able to write the loan off as a business bad debt instead of a loss from an investment.
A business bad debt is helpful because it can help offset other ordinary income like interest and dividend, and W-2 income. It can also serve to create a net operating loss on your individual return in the event that your income is not high enough to offset your business loss.
There are many other aspects of lending money to your corporation and important steps you should take in order to do it right. You can learn more about the process of lending money to your corporation by clicking here. If you would like to speak with us personally then give us a call at 1-877-CPA-2006 or click here to contact us.
The Wash Sale Rule of Capital Gains Tax
The Wash Sale Rule of Capital Gains Tax Awash sale is a trading activity in which shares of a security are sold at a loss and substantially identical security is purchased within 30 days. The subsequent purchase could occur before or after the security is sold, creating a 61-day window that must be monitored to…
Employers linking employee premiums to health screen programs
Employers linking employee premiums to health screen programs As more employers require employees to take greater financial responsibility for their own health care as part of the consumerism movement, some employers are going even further, tying employees’ premium contributions to their participation in health risk appraisals and, in some cases, to improvements in health status.…
Persistence – Use Good Judgment
Persistence – Use Good Judgment Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan “Press…
Feeding a Dream
Feeding a Dream Taking Tex-Mex to Bangalore by Elizabeth Bowden-David Christopher Columbus, as the story goes, pursued a dream of India and landed on American shores. I, too, set out on a journey to India, but my dream was launched from American shores. Eight years ago, I moved with my Indian-born husband from California to…