I've contributed about $3900 of my personal funds to my LLC. Is this deductible?

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  • I've contributed about $3900 of my personal funds to my LLC. Is this deductible?


Answer #1 | 26/12 2013 12:56
No, you don't deduct the money you put in. You deduct the expenses though that you spent it for eg advertising.
Answer #2 | 26/12 2013 13:34
No. The money you put in is an investment.
Answer #3 | 26/12 2013 15:06
If you have spent money on advertising, those expenses are deducted on Schedule C. The source of the money is not relevant to its deductibility. Many sole proprietors use personal funds to pay business expenses. The "networking activities" are vague and if they are an ordinary and necessary expense, they may be deductible on Schedule C. For example, professional dues, publications, and so on. None of the expenses you mention would be personal deductions on Schedule A. The money you spent on your business expense is not income to your sole proprietor business.
Answer #4 | 26/12 2013 15:10
And you really do need some good face to face experienced professional to give you some advice and guidance at this time in your life with your income tax return and your business operation to try and prevent some BIG problems at some future time in your life. IRS sole proprietor business using the schedule C and the SE of your 1040 FIT return during the 2014 tax filing season. No not schedule A deductions at all. Just expenses on your schedule C during the 2014 tax filing season. Hope that you find the above enclosed information useful. 12/26/2013
Answer #5 | 28/12 2013 10:04
"I consider it an $3900 investment into my LLC" This is exactly what it is, an investment. You have provided Additional Paid in Capital. No, this is NOT deductible as an investment. But, the cost of the advertising and other expenses this money was used for, are deductible.
Answer #6 | 27/12 2013 10:28
You deduct actual expenses.

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