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.
8 Steps for Getting Out of Debt
8 Steps for Getting Out of Debt The average American spends a great deal more than they make every year. This results in a financial pitfall later in life. If you find yourself digging deeper into the empty wallet, here are ten steps you can use as a crutch to help free yourself of the…
6 Tips to Consider When Faced With Foreclosure
6 Tips to Consider When Faced With Foreclosure By Alan L. Olsen, CPA, MBA (tax) Managing Partner Greenstein, Rogoff, Olsen & Co., LLP Updated: 10/9/12 Many find themselves faced with foreclosure in the world today. Sometimes the circumstances leading to foreclosure isn’t your fault. If faced with foreclosure, most likely you want to know what…
Invest QSBS exclusion
Invest QSBS exclusion Updated: 1/23/2013 The FTB issued Notice 2012-03 on December 21, 2012. The Notice states that the Court of Appeal’s holding in Cutler v. Franchise Tax Board (2012) 208 Cal. App. 4th 1247, that the qualified small business stock exclusion and deferral statutes determined that the qualified small business stock statues–California Revenue and…
IRS Representing Yourself
IRS Representing Yourself So you are under audit with the IRS or the Franchise Tax Board. Thinking about representing yourself. I suggest that you think again. As a former IRS agent, some of the easiest adjustments came from individuals representing themselves. Simply put, I would ask questions and then listen to responses. Within the first…