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.
Could the Wealthy Still Pay Obamacare Tax After Trump Plan Replacement?
Could the Wealthy Still Pay Obamacare Tax After Trump Plan Replacement? It’s now June and the fight over the nation’s healthcare bill is still ongoing. It’s not that lawmakers aren’t trying to get something done that would ultimately replace Obamacare, but as with most things in Washington, it’s a slow-moving process. The House’s first attempt…
New Health Care Plan Could Be a Huge Boost to the Wealthy
New Health Care Plan Could Be a Huge Boost to the Wealthy Out with the old and in with the new. You might say that has been the calling card of the new presidential administration since Donald Trump took office. From immigration reform to healthcare, and from tax reform to federal government budget cuts, the…
What Type of Person Should Every Business Leader Hire?
What Type of Person Should Every Business Leader Hire? As a business leader you have a lot of responsibilities. In fact, depending on your exact position in the company you work for, you might be the one responsible for all the major decisions that have to be made. As an effective and successful leader, you…
Can You Get a Worthwhile Education at an Affordable Price?
Can You Get a Worthwhile Education at an Affordable Price? It’s no secret that getting a college education is expensive. While some students are fortunate enough to earn a scholarship, most students have to find other means to pay for their schooling. Tuition alone is a significant commitment, not to mention all the other expenses…