Question regarding how to deduct business expenses paid with personal funds
I received the following question from one of our readers today:
I started a new business with my husband as my partner in January 2017. We structured it through legalzoom as an LLC We invested 100,000 of personal funds to start the business as equity shares not as a loan to business. We have had no income yet, as we are developing a product. We have not paid any salary to anyone.. we have used almost all the funds towards development and marketing… My question is about taxes.. We have spent a lot of extra personal funds on travel expenses & a computer & cell phone … we have been traveling to meetings with various potential investors. Can we deduct any of these expenses from our personal tax return?
Here is my response:
You can deduct any expenses that you have paid on behalf of your business from your business tax return and not your personal tax return. You can refer to our Small Business Owner’s Guide to LLC Taxes for more info here:https://fitsmallbusiness.com/llc-taxes-tax-returns/. I would also recommend that you consult your tax professional who can review & assess your specific tax situation.
Thank you for reading!
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
355 Lexington Avenue, 18th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.