A required business account had a shortfall of $18000. I withdrew that amount from my IRA to cover the discrepancy. Is any of this deductible for my LLC?

brad5 · ‎June 4, 2019

Critter · ‎June 4, 2019

You made a loan to the company ... the company can deduct only the normal business deductions even if they were paid with the loan ( ie payroll taxes ) but it cannot deduct the loan amount. And sadly the IRA distribution is still taxable and subject to the early withdrawal penalty.

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Critter · ‎June 4, 2019

You made a loan to the company ... the company can deduct only the normal business deductions even if they were paid with the loan ( ie payroll taxes ) but it cannot deduct the loan amount. And sadly the IRA distribution is still taxable and subject to the early withdrawal penalty.

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A required business account had a shortfall of $18000. I withdrew that amount from my IRA to cover the discrepancy. Is any of this deductible for my LLC?