Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I started a C-corp on 5/1/08 and loaned the corporation money

for start up costs....
I started a C-corp on 5/1/08 and loaned the corporation money for start up costs. I also gave the corporation a small line of credit for start up expenses, including pay roll, office supplies, vendors, legal fees, etc.. The corporation closed in December of 2008. They repaid part of the fees, but over $7K remained unpaid. Can any of that be written off on my 2008 taxes? If so, where would I enter that in TurboTax Online?
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 hours by:
10/1/2009
MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
Verified

DearCustomer-

 

To determine if you have a bad debt or a capital loss, you must first determine if the amount was actually a loan or whether it should have been classified as a capital contribution.

 

If it was a loan it will probably be classified as a business bad debt. See link to IRS Publication 535 below. If a non-business bad debt, see Publication 550 (link below).

 

If the amount should have been a capital contribution, you will have a capital loss on disposal of stock.

 

Business Bad Debt, see page 37: http://www.irs.gov/pub/irs-pdf/p535.pdf

 

Non-business Bad Debt see page 53: http://www.irs.gov/pub/irs-pdf/p550.pdf

 

MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
Verified
MequonCPA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask MequonCPA Your Own Question
MequonCPA
MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,342
2,342 Satisfied Customers
Experience: CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.

MequonCPA 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

1,300 satisfied customers

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

Richard

Richard

Tax Attorney

4,338 satisfied customers

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

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 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
I looked at my credit report and the irs is still on there
i looked at my credit report and the irs is still on there but have been paid. it says released. i no longer owe since 2016. can it please be removed. … read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
64 satisfied customers
My question is: Is the foreign tax credit 100% Offset to the
Hi, my question is: Is the foreign tax credit 100% Offset to the Alternative Minimum Tax, if there are only foreign income? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Has the disabled tax credit been changed? In the beginning,
has the disabled tax credit been changed? In the beginning, type 2 diabetes was used as an example of a disabilty that would be approved. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
WHAT IS 73-10? California. IRS in my credit report
WHAT IS 73-10? JA: What state are you in? It matters because laws vary by location. Customer: california JA: Has anything been filed or reported? Customer: IRS in my credit report JA: Anything else yo… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
Tax pro familar IRS Representation as it applies to
This is for a tax pro familar IRS Representation as it applies to collections from a foreign country. I am an EA with a potential client. Situation is a Canadian moved to America filed his back taxes … read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
I have a capital loss carryover from GM bankruptcy that will
I have a capital loss carryover from GM bankruptcy that will not be retired yet by some capital gain from sale in 2017. Can I use the balance of carryover from a sale in 2017 even tho I may not need t… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
1. Can the healthcare premium tax credit from previous year
1. Can the healthcare premium tax credit from previous year be carried forward? Income was so low in 2016 that I paid no tax so could not use credit (from form 8962) in 2016. Also, info provided to me… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
I have a question about NC capital loss taxes, I have about
I have about $40k in stock losses in 2016. My federal return limits the capital loss to $3k and I have to carry forward the other $37k. I'm wondering if NC has the same limitation or if I'm able to claim a higher portion of those capital losses? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Energy Credits - Please confirm that energy tax credits have
Energy Credits -Please confirm that energy tax credits have expired at end of 2016. Are there any credits for residential HVAC for 2017 tax year?Thanks, JW… read more
abci168
abci168
Principal
27 satisfied customers
Federal Tax Credit or NC Tax Credit For 2017, is there any
Federal Tax Credit or NC Tax CreditFor 2017, is there any type of tax credit for replacing a roof on a historical house (1870)? It is primary residence. They will either replace the roof or do "hydros… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
I want to monetize a 111k capital loss that I have from the
I want to monetize a 111k capital loss that I have from the sale of my Fathers house which I inherited after he died … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
Capital Gain - A taxpayer has capital loss (short term and
Capital Gain -A taxpayer has capital loss (short term and long term) carryover from stock sales. He also has loss carryover from rental property.When he sales the rental property, all the rental loss … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I have a lot of capital losses one year that are much
Hi. If I have a lot of capital losses one year that are much more than my capital gains, can those losses can be used in any amount up to the amount of my capital gains in a subsequent year to reduce … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
My 2015 1040 has a capital loss of 160,000 which resulted in
My 2015 1040 has a capital loss of 160,000 which resulted in a adjusted gross income of -43,000. All I paid was self employment tax. Since my income was less than zero can some of this be transferred … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
I have question regarding MTM election and capital loss
Hi, I have question regarding MTM election and capital loss carry over … read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
The IRS called and said I had a tax credit for 2013- $5400.
The IRS called and said I had a tax credit for 2013- $5400. … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Re: Capital Loss/Gain for Inheritance IRS Advisor, In
Re: Capital Loss/Gain for InheritanceIRS Advisor,In December 2009, my son passed away leaving a house. He had a will, and the will stipulated that my daughter would inherit the house and be executor. … read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,300 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