I gave my husband $10,000 to buy business equipment that he will depreciate. Does he just show that as income?

[turbochristie53]

The money that I gave him is from money I withdrew from my retirement account last year.  It is already being shown as income on our joint tax return. If he also shows it as income on his Schedule C we will be taxed on it twice. If he doesn't show it as income he is going to have a NOL on his business.

[Molly_K · Accepted solution]

Since you are filing jointly and already taxed once on the retirement income, this "gift" is not considered income for schedule C. It is ok that has has an NOL as long as he is actively participating in the business and it is not a hobby.