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If a sole proprietor loans money to his schedule C does the…

Customer Question
If a sole proprietor loans...
If a sole proprietor loans money to his schedule C
does the loan increase his basis in the business and when the
business is closed, can the unrepaid loans be taken as a
loss ?
Submitted: 10 months ago.Category: Tax
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Answered in 5 minutes by:
6/20/2017
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 10 months ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,406
Experience: Certified Public Accountant
Verified

Hi, my name is Mark. I will be happy to help you with your questions. You would not be able to loan money to the proprietorship. The individual and sole proprietor are one the same. The $100,000 would add to the amount at risk for the individual. If the business cannot repay this amount it would likely be a business loss.

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