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welcome to just answer.
it sounds like you are doing the bookkeeping for the business. there are two things you should clean up now, so the beeookkeeping and future go well.
If you have paid personally for business expenses, I would execute a note payable by the LLC that records the amount you loaned. Then, when the LLC can repay the $, payments will go toward the loan balance.
no have a bookkeeper for business, but trying to make sure I include these somewhere on my return when I get my schedule k ....the bookkeeper is not aware of these expenses....
looks like business may fail...want to deduct all I can now...
most of this is travel back and forth to business location in new mexico from texas
Secondly, if you borrowed money to make your LLC contribution, that's capital and you alone would be responsible for the interest. If it is indeed a loan, you should again execute anote, with interrest, from the LLC to you. Then, interest and principal repayments could be easily recorded.
you are correct...it is capital.....but would that not be investment interest expense?
for me personally?
the LLC can't repay your loan if you made it as capital contribution.
The investment interest expense is margin interest or similar. It does not include money you borrowed to make your LLC contribution.
correct...I personally borrowed money from my 401 k to make my capital contribution....
ok so that interest is not deductible....
what about the other travel and supply expense?
your loan will be deductible as a business bad debt if you take some steps. The travel and supply expense will be a deduction of the LLC, and you'll get a piece of that too.
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