Business Starting Grants

Invested my own money to finance a small business. What are my options if I leave the business?

Can I write that investment off my taxes if the amount has not been re-paid in full? What are other options? The business may not be able to re-pay the investment.

Public Comments

1. This is a very simplistic answer, but until the business makes a profit, you do not have any write offs. That would be asking the taxpapers to finance your venture.
2. I'm not sure what you mean by invest - but lets assume you are starting a lawn care business using your own money. You buy a truck, riding mower - push mower - trimmer etc. Those are your company assets and each year you can write off (list as an expense) a portion of the cost as depreciation. If you have a room in your home completely dedicated to being your business office you can take a home office deduction (and depreciate a portion of your home - which you have to reclaim when you sell). You now advertise - newspaper, phone book, fliers etc. You buy supplies - lawn bags, gas, gloves, fertilizer etc. - that is all expense. You get a couple jobs - that is income. If the income does not pass the amount of expense you have a business loss which is a deduction on your taxes. Next year you do better hopefully.
3. If the business is still operating, ask if the primary owners will buy you out. If the company is out of business you should be able to write it off your taxes as an investment loss. Good Luck