Invested Money in Small Business as Partner - Tax deductions possible?

I invested 3K in start-up money with 2 other guys plus spent another 4K in misc. such as travel costs, supplies, etc. and we haven't taken a salary or any income and are actually barely breaking even. Can I get any tax benefits for my personal income tax by having invested in this business?

Thanks.

LLC is the entity. Will not be changing that. I also live 2 states away and will not be able to just go see a tax pro together with the 2 other partners. The solution will have to be individually solved for each of us. They both have multiple other businesses it is just not going to be us going to see the same personal accountant.

Thanks.

I agree with the above post. This is not something that you want to tackle on your own.

Though partnerships do not pay taxes (their owners do), a partnership tax return must be also filed for 2006. You will probably need a profession to handle this. You and the other owners will receive a "K-1" that will show your share of profits (if any) and deductions.

In a word, yes. However, I'm not going to spend an hour discussing what you need to do - the three of you need to visit a competent tax professional to discuss the most advantageous type of business entity for your situation.

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