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Can an investor "write-off" when they fund a new business?


The business is set up as an LLC and profts (according to the business plan) can be distributed to shareholders tax-free once sales begin. The question is, can whoever initially funds the corporation use that as a write-off?

An investment is not considered an expense.

if you received a Note for your money, then its called a Loan. If you have a company that loans money to corporations then this is a disbursement but also, is not an expense.

if your investment goes bad, then you can "write it off" as an expense
if your loan is not repaid , you can also write that off as an expense. it it is ever repaid, then it would be considered Income at that point.

wer

expenses are deductable, not funding. however, when you pay yourself back, it won't be considered wages.

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