Discussion:Business Grants Taxable Income?

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Discussion Forum Index --> Tax Questions --> Business Grants Taxable Income?

Illini (talk|edits) said:

26 February 2007
S-Corp client receives $18,000 Grant from State Technology Institute for their business.

Is this taxable income to the business?

(This is a for-profit business)

It sure seems like it would be, but I have no documentation either way.

Glmpllc (talk|edits) said:

27 February 2007
See IRC Sec. 118 and regs thereunder...maybe it is, maybe not.

Riley2 (talk|edits) said:

27 February 2007
As Glmpllc indicates, this could be a nontaxable contribution to capital if there is no quid pro quo.

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