Welcome, Guest. Register Now!
   
Veiw New Posts View Todays Posts


» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 
Financial Planning
 
US Presidential Tax Policies
 
 
 



View Single Post
  #2 (permalink)  
Old 02-03-2008, 06:59 PM
TaxGuru TaxGuru is offline
Super Moderator
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 1,043
Blog Entries: 2
I am not sure what you mean by "money I have out in loans". Is this your capital or monies you have lent the LLC or is the money that you have lent to your customers?

If it is monies that you have lent the LLC, then clearly it is reported as a loan from Shareholder on your balance sheet of the tax return.

If on the other hand you have lent the monies to your customers then it is not an expense rather an Accounts Receivable, and not an Expense! If this money is not returned for any reason then and only then it is deemed as a bad debt expense that is reported as an expense on tax return.

Remember, your business actually lends monies, it's more like you are extending a credit to customers as an advance to their wages. The only expenses in this business are the normal business operating expenses, interest expense on the funds borrowed to support the accounts receivable/loan advances and the bad debt generated from the customers not paying this loan advance.
__________________
Ask TaxGuru
Please refer to the legal disclaimer.
Reply With Quote