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.
Are Changes Coming to Capital Gains Taxes?
Are Changes Coming to Capital Gains Taxes? If you’re still trying to catch up with all the changes brought about by the Tax Cut and Jobs Act, then you might want to have a seat. That’s because republican lawmakers aren’t done yet. At least, they don’t want to be. Lawmakers in Washington have been busy…
Seven Important Tips that will help you crush your next Interview
Seven Important Tips that will help you crush your next Interview 1) Learn about the company It’s important to do research on the company for which you are interviewing. Take some time to research the position, the company, the culture, and some perks/drawbacks of the job. You can often find out more about a job…
The Key Asset to Building Top Performers
The Key Asset to Building Top Performers Are you a manager, or a team leader? If you are, then one of your goals is likely building the best team possible. After all, in most work situations, leaders are only as good as the teams they lead. So how do you build the best team? What…
New Strategy for Wealthy Taxpayers to Beat Property Taxes
New Strategy for Wealthy Taxpayers to Beat Property Taxes One of the biggest complaints of the Tax Cut and Jobs Act (TCJA) has been how it affects the state and local taxes (SALT) deduction form the federal return. These deductions have been a major part of many taxpayers’ returns for many years, especially wealthy taxpayers.…