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Business Bad Debt Deduction

The tax traps of personally guaranteeing a loan to your corporation

Leave a Comment / Business Bad Debt Deduction, Closely Held Corporations, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips /

If you’re considering guaranteeing, or are asked to guarantee, a loan to your closely held corporation, it’s important to understand the potential tax consequences. Acting as a guarantor, endorser or indemnitor means that if the corporation defaults, you could be responsible for repaying the loan. Without planning ahead, you may face unexpected tax implications. A […]

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Deduct a loss from making a personal loan to a relative or friend

Applicable Federal Rates (AFRs_, Business Bad Debt Deduction, Capital Losses, Federal Taxes, Personal Loans, Tax Implications Of Making a Personal Loan /

Suppose your adult child or friend needs to borrow money. Maybe it’s to buy a first home or address a cash flow problem. You may want to help by making a personal loan. That’s a nice thought, but there are tax implications that you should understand and take into account. Get it in writing You

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