Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I have a successful self employment and pay the tax due. I

Customer Question
started a company separate from...
I have a successful self employment and pay the tax due. I started a company separate from this with a friend in the 2007 2008 tax year and I have spent about £6,000, initially thinking it would be a Director's loan. It is unlikely this company will ever obtain any income, so my question is, "am I able to set the £6,000 expenditure against my self-employed income or not? My total self employment income is just over £30,000 in the 2007 2008 tax year.
Submitted: 9 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 16 minutes by:
9/5/2008
Tax Professional: Anne, Master Tax Preparer replied 9 years ago
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Verified

HiCustomer/p>

 

Thank you for using justanswer. For all practical purposes, your answer is no. Even if your current business was closely related in nature to the business that you invested in and that never really got off the ground, you would still have to be able to document that it was the business, not you personally, that made the business investment and making this type of an investment would be a normal part of your business's activities.

 

US tax law allows a person to take either a personal bad debt or a business bad debt in these types of situations, assuming that it meets all of the qualifiers. I notice you mention your money in terms of pounds, so I'm pretty sure you're not in the US.

 

I would suggest that you find a professional tax pro, Enrolled Agent, or CPA in your home town and let them give you some guidance on how best to recoup what ever % you can based on the tax laws of where you live.

 

I hope this helps

 

If you have found my answer helpful, please click the green "accept" button as it is the only way we get paid.

 

Positive feedback and bonuses are always appreciated.

Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Verified
Anne and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Anne Your Own Question
Anne
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
2,439 Satisfied Customers
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses

Anne is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
With the passage of the new trump tax law, what will be the
with the passage of the new trump tax law, what will be the best careers in accounting or finance to pursue?… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
525 satisfied customers
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
With these new tax laws going into place I have a few
With these new tax laws going into place I have a few questions. Our personal taxes have been in the 15% bracket but I have heard now we will lose 20,250 in exemptions due to the per person rate. Ther… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
Interested in information about new tax laws and their
Interested in information about new tax laws and their effect on S Corporations … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Under the new tax law, should I put my investments into a
Under the new tax law, should I put my investments into a LLC so that I can take advantage of the 21% pass-through rate? … read more
Carter McBride
Carter McBride
LLM
269 satisfied customers
Not sure if this is considered tax law or employment law,
Not sure if this is considered tax law or employment law, but...I worked overseas and would file my own taxes and get foreign tax credits. 2 years ago, company changed policy and said they would pay t… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
Tax law. California. 2016. I am a tax preparer... I have a
I am a tax preparer... I have a client that is under audit... he unfortunately paid approximately $200,000 to subcontractors CASH... the IRS is not allowing the deduction... is there a way we can prove it?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
In the new tax law 20 percent of revenue for pass-through
In the new tax law 20 percent of revenue for pass-through entity such as corporations filed with chapter S is deductible, is there a threshold for gross income on that on the personal return?… read more
Carter McBride
Carter McBride
LLM
269 satisfied customers
At 66 what are the tax laws. Iam 66 and if i go to work what
at 66 what are the tax laws JA: What state are you in? It matters because laws vary by location. Customer: iam 66 and if i go to work what are the tax laws JA: Has anything been filed or reported? Cus… read more
abci168
abci168
Principal
27 satisfied customers
My question relates to the new tax law that goes into effect
My question relates to the new tax law that goes into effect 1/1/2018. We own 4 rental properties in addition to our residence and file our taxes as married filing jointly. Given the new "pass through… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
To: taxmanrog: The new tax law, expected to be signed into
To:Customer The new tax law, expected to be signed into law this Friday, ends penalties for people who don't carry health insurance. That's a major change. I have described other new changes in my doc… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
With the new tax laws, if I'm a sole proprietor, would it
With the new tax laws, if I'm a sole proprietor, would it make sense for me to become an LLC? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
The 2018 tax law will allow homeowners to deduct property
The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. What does this mean? w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Where can I find an outline of the proposed new tax laws.
Where can I find an outline of the proposed new tax laws … read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
What do I need to be aware of with the US tax law whenever I
What do I need to be aware of with the US tax law whenever I am hiring someone off shores? I currently have an assistant who lives in the Philippines and my business and I are located in the United St… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Are you familiar with income tax laws on business and
Are you familiar with income tax laws on business and personal returns? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Question for a Tax Attorny who Knows US tax Laws regarding
Question for a Tax Attorny who Knows US tax Laws regarding Foreign Companies ? My company is a Cayman Company (#1) (Foreign) owned by USA Citizens (2). Company (#1) filed IRS Form 8832 to be Taxed as … read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
REGARDING THE FEDERAL TAX LAW INTHE US. IF ONE RECEIVES
REGARDING THE FEDERAL TAX LAW INTHE US. IF ONE RECEIVES ALIMONY PAYMENTS, WHAT CAN QUALIFY AS TO ***** REDUCE THE TAX ON THE ALIMONY RECEIVED ? CAN BUSINESS LOSES BE CARRIED OVER TO REDUCE THE TAX ON … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x