This year I started a corporation with someone else. I used $5,000 of my personal money to purchase inventory. Can i claim this $5,000 a on my personal taxes?

Forum|Forum|6 years ago
May 31, 2019
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Best answer by TaxGuyBill

A loan is not reported on your personal tax return.

However, you do need to report any interest that you have received from the loan.

SweetieJean

Employee

C Corp or S Corp?

TaxGuyBill

Employee

You need to sit down with the other shareholder and a tax professional, and discuss if the payment was (1) a loan to the corporation, (2) a Capital Contribution or (3) a Unreimbursed Employee Expense. After you do that, THEN we may be able to tell you how it affects your personal tax return.

chanitaparsleyAuthor

Employee

We have had the conversation and my contribution is a loan

TaxGuyBillAnswer

Employee

A loan is not reported on your personal tax return.

However, you do need to report any interest that you have received from the loan.

SweetieJean

Employee

Be sure you have a written loan agreement.