Discussion:Loan to start a business
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 23:40, 15 August 2007 TheTinCook (Talk | contribs) (Do you mean cost) ← Previous diff |
Revision as of 00:05, 16 August 2007 Gpevan06 (Talk | contribs) (I think what he) Next diff → |
||
| Line 9: | Line 9: | ||
| Then there is the issue of a sole proprietor "loaning" money to his sole proprietorship.}} | Then there is the issue of a sole proprietor "loaning" money to his sole proprietorship.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Gpevan06|Date=16 August 2007|Text=I think what he wants to do is recover the money he loaned to the business in the first year to pay the operating expenses since he did not have enough income to cover those expenses. But, I told him that he deducted all the expenses and claimed his loss for the first year, which he was able to use against a large capital gain.}} | ||
Revision as of 00:05, 16 August 2007
Discussion Forum Index --> Tax Questions --> Loan to start a business
| 15 August 2007 | |
| How does a sole proprietor recover money loaned to start his business? He used his personal funds to buy office equipment, furniture, etc. | |
TheTinCook (talk|edits) said: | 15 August 2007 |
| Do you mean cost recovery?
It all depends on when and on what he spent his money on. You recover the cost on tangible assets like furniture and office buildings by depreciation. Intangible assets get amortized under Sec. 197. Startup and organization costs can be partially expensed and amortized under Sec. 195. Then there is the incredible Sec. 179. Then there is the issue of a sole proprietor "loaning" money to his sole proprietorship. | |
| 16 August 2007 | |
| I think what he wants to do is recover the money he loaned to the business in the first year to pay the operating expenses since he did not have enough income to cover those expenses. But, I told him that he deducted all the expenses and claimed his loss for the first year, which he was able to use against a large capital gain. | |
