In 2019 I had used inheritance funds to start up a small business. It had taken many months to get it opened and once open in Jan 2020 just two months later Covid hit. Therefore a lack of income but numerous expenses (still have to pay my lease amount). In 2019 I had worked simply to pay personal bills and received a W2 for that job, but all inheritance funds went into the business. I cannot seem to find anything in Turbo Tax that helps with this situation. I've spent 3 days looking...
Instead of borrowing from another source with higher interest rate, I was hoping to use my Inheritance money (which was not a lot) to get started and to pay back the inheritance once I showed some income from thew business. . I am a Sole Proprietor LLC and filing Schedule C.
Another issue is that I am currently going through a divorce as well, and I may be out of luck, but do not want it to inaccurately look like I used my "Job income " towards my business. If at all possible, how do I separate those two on paper? It is separated in bank accounts, but I can't figure out how/where to enter the savings account (personal loan) into the mix.
My questions:
1. How do I acknowledge the money is coming from a personal savings account? Where on Schedule C do I put that?
2. How is that account labeled and used in Turbo Tax? Is it considered a Personal Loan? If so, I didn't pay interest or make payments yet (without income)
3. Where do I place the deductions that are above and beyond the $50,000 start up allotment? It looks like that can be depreciated over 15 years? But where is that entered? Do I enter it in the same category as start up? Or, limit that amount of $50,000. on my own and enter the remaining in some other category?
UGH!!! I hope someone can help because No income. New Business is Shut down, hence, I cannot afford a CPA.
I'm not savvy with the terminology so any examples would help too.
Thanks in advance
