Accepted Answer

Helllo jraymond,

Unfortunately, the money that your wife is giving to you is simply treated as a gift, and gifts are never tax deductible unless they are given to a qualified charitable organization.

If your wife is giving you this money as a loan, and you have an official loan document drawn up to attest to the fact that this is a loan which she expect to have repaid, then if at some point in the future your business fails or goes bankrupt and you are unable to repay her loan, then she could possibly deduct this as a bad debt. But that would be the only possible option for a deduction here. Even in that case, she would have to show that she took all reasonable means to collect the debt, including filing a claim in court if necessary.

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Thank you.

Expert:	Merlo
Pos. Feedback:	99.8 %
Accepts:
Answered:	10/20/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad