How to I declare money from people investing in my business?

[Jbassking]

In 2019 I received investments from 3 people in my business, how do I declare this? Is it counted as regular income?

[Anonymous]

if you have other 3 people investing in your business you may have a partnership that requires the filing of form 1065 which was due 3/15/2020. knowing whether or not a partnership return needs to be filed depends on what their investment is.  if it's a loan then there should be loan documents specifying the terms including the interest rate.  if they're loans you don't have a partnership unless the "interest" they're to be paid is related to the profits. if it is a partnership, it's 5 months late. penalties are potentially in the thousands of dollars.  seek out a tax professional that can help you in the return preparation, what has to be done in the future, record keeping, and filing a request for penalty abatement.    the money from the investors is not income.   

[Critter-3]

I agree ... seek local professional assistance ASAP.

[Jbassking]

Thank you. I'll get with someone asap. Hopefully it helps that we've had a loss.