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.
Popular Tax Credits for First-Time Homebuyers, Students and Those With Childcare
Popular Tax Credits for First-Time Homebuyers, Students and Those With Childcare By Victor Omelczenko 1/26/2009 Whether you’re looking to lower your tax bill or increase your refund, these IRS tips can help your bottom line. Tax credits can help pay the cost of raising a family, going to college, saving for retirement or getting day…
Profit From Your Children
Profit From Your Children Profit from your children? Making maximum use of your dependents can help slash your taxes significantly. “Dependents” generally mean your kids, but many of these gambits also work with low-income parents you might be assisting financially — even if they aren’t your dependents. Here are a few to consider. Hire your…
Myths About Trusts
Myths About Trusts Trusts are a dependable way to arrange for the management of family funds. Yet even financially sophisticated people settle for less satisfactory alternatives. Lack of knowledge isn’t the problem. It’s the assorted myths about trusts handed down over the years. Myth #1. Only the very rich use trusts. Because what the superrich…
Calculating Capital Gains Tax on the Sale of a Collectible
Calculating Capital Gains Tax on the Sale of a Collectible Uncle Sam takes a tax bite out of almost every asset sold and collectibles are no exception. Indeed, collectibles are currently subject to one of the highest rates of federal taxation on an investment property. Long term Capital gain from the sale of a collectible…