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10-21-2009, 04:50 PM
| | Junior Member | | Join Date: Oct 2009
Posts: 1
| | | Investor reimbursements
Let's say a business venture fails, and there were about 10 different investors and between all of the expenses trying to get the business going, you run out of money but still want to pay some investors back. Would the money that you pay out of your own pocket to an investor in this partnership be considered a business expense and be deductible on your return?
Any tax codes, regulations, or cases would be useful.
Thanks, |
10-21-2009, 04:55 PM
| | Senior Member | | Join Date: Jan 2005
Posts: 21,720
| | Quote:
Originally Posted by passerma  Let's say a business venture fails, and there were about 10 different investors and between all of the expenses trying to get the business going, you run out of money but still want to pay some investors back. Would the money that you pay out of your own pocket to an investor in this partnership be considered a business expense and be deductible on your return?
Any tax codes, regulations, or cases would be useful.
Thanks, | US Law Only!
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10-21-2009, 06:32 PM
| | Senior Member | | Join Date: May 2004
Posts: 41,421
| | Quote:
Originally Posted by passerma Let's say a business venture fails, and there were about 10 different investors and between all of the expenses trying to get the business going, you run out of money but still want to pay some investors back. Would the money that you pay out of your own pocket to an investor in this partnership be considered a business expense and be deductible on your return?
Any tax codes, regulations, or cases would be useful.
Thanks, | It would not be a business expense. There may be a way to structure the money so that it adds to your basis and allows you to take a greater amount of losses, but it is not a business expense. Get a consult with a local tax professional.
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