Solved

This year I started a corporation with someone else. I used $5,000 of my personal money to purchase inventory. Can i claim this $5,000 a on my personal taxes?

Forum|Forum|6 years ago
May 31, 2019
5 replies
0 views

No text available

Best answer by TaxGuyBill

A loan is not reported on your personal tax return.

However, you do need to report any interest that you have received from the loan.

C Corp or S Corp?

You need to sit down with the other shareholder and a tax professional, and discuss if the payment was (1) a loan to the corporation, (2) a Capital Contribution or (3) a Unreimbursed Employee Expense. After you do that, THEN we may be able to tell you how it affects your personal tax return.

C

chanitaparsleyAuthor

We have had the conversation and my contribution is a loan

T

TaxGuyBillAnswer

A loan is not reported on your personal tax return.

However, you do need to report any interest that you have received from the loan.

S

SweetieJean

Be sure you have a written loan agreement.