W
Wadahoot
Guest
I have been in business with a best friend (big mistake!) for 8 years. We are incorporated, are both officers and do not draw a salary. We have both been paid as independent contractors, based on commission.
We both put money in as start-up money. We both are personally owed money where we purchased office supplies, postage, etc. Neither one of us have received a paycheck for almost 2 years, so that we could keep money in the checkbook to pay bills.
Due to a number of poor decisions and major mistakes on her part, we are loosing money hand over fist. I also found out that she took money out of the safe for personal use; her husband doesn't think they should have to repay it, since they invested an original amount and just want to say they were partly paid back.
To make matters worse, she has admitted to taking a large commission check, made out to the business, and cashing it to use for personal use.
As you can imagine, I've had it! I want to get out, but have stayed in for the past year only to try to make enough money back so that I can get paid my investment, expenses and past due pay checks. She has pretty much quit working and there is not enough money being made to have this happen any time soon (plus the headaches are getting worse!).
I have been told that I cannot take my "lost" pay off of my personal taxes. If this is true...it stinks! The only thing I could think of is perhaps if the business declared bankrupcy, it would benifit me personally in some way. There is probably enough money to pay back the expenses to both of us, and perhaps most of the investment.
I don't really want to go to court, as she (was) a dear friend (yes, this has changed my feelings towards her totally), and she is going through a divorce and neither of them have much cash (nice home and cars, but no money).
Any great thoughts on how to best get as much money back, either directly from the company, or through losses on my personal taxes?
Thanks so much for "listening"!
Anita
We both put money in as start-up money. We both are personally owed money where we purchased office supplies, postage, etc. Neither one of us have received a paycheck for almost 2 years, so that we could keep money in the checkbook to pay bills.
Due to a number of poor decisions and major mistakes on her part, we are loosing money hand over fist. I also found out that she took money out of the safe for personal use; her husband doesn't think they should have to repay it, since they invested an original amount and just want to say they were partly paid back.
To make matters worse, she has admitted to taking a large commission check, made out to the business, and cashing it to use for personal use.
As you can imagine, I've had it! I want to get out, but have stayed in for the past year only to try to make enough money back so that I can get paid my investment, expenses and past due pay checks. She has pretty much quit working and there is not enough money being made to have this happen any time soon (plus the headaches are getting worse!).
I have been told that I cannot take my "lost" pay off of my personal taxes. If this is true...it stinks! The only thing I could think of is perhaps if the business declared bankrupcy, it would benifit me personally in some way. There is probably enough money to pay back the expenses to both of us, and perhaps most of the investment.
I don't really want to go to court, as she (was) a dear friend (yes, this has changed my feelings towards her totally), and she is going through a divorce and neither of them have much cash (nice home and cars, but no money).
Any great thoughts on how to best get as much money back, either directly from the company, or through losses on my personal taxes?
Thanks so much for "listening"!
Anita