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Deductions & credits
What you "technically " did is you gave the company a LOAN (loan from shareholder) in order to pay for these expenses so you can deduct them on the company return in the year they are purchased. In future years, as the company is able, it will repay these loan amounts ( repayment of loan from shareholder) and technically the company should pay you some interest on the loan.
The loan from shareholder is NOT income and repayment is NOT an expense/deduction to the company. These are bookkeeping concepts that you need to educate yourself on or employ a bookkeeper to keep the books correctly. This infusion of funds will adjust your basis in the business which also must be kept track of per the IRS regulations.
May 3, 2022
12:45 PM