Are you filing your business on Schedule C? Sorry you don't report that on your tax return. The Schedule C is a disregarded entity. You don't report personal deposits or withdraws. You just pay the self employment tax on the Net Profit. You can't deduct that from your personal income. You deduct it by entering the actual business expenses.
Found my good note.....
If you are a sole proprietor or self employed, you don't account for cash, money or loans you put into the business. The schedule C is all your personal income and expenses in the first place. Doesn't matter what account the money came out of. It is not income or an expense. You just enter the gross income you received and actual expenses you paid. If you paid for something you can take the expense. Doesn't matter how you paid it. You deduct the money you put in to the business by entering the expenses you used it for.
