Morgan R asked:
Over the last year, my only(small) source of income from my AZ LLC has been in the form of repayments of the loan I originally gave the business as start-up cash. How am I to pay taxes on these repayments? I need some help before I hire a tax consultant so I don’t look as naive as I am, and thus waste his or her time, and my money. Thanks for any help you can offer.
Over the last year, my only(small) source of income from my AZ LLC has been in the form of repayments of the loan I originally gave the business as start-up cash. How am I to pay taxes on these repayments? I need some help before I hire a tax consultant so I don’t look as naive as I am, and thus waste his or her time, and my money. Thanks for any help you can offer.
Interest.
The interest portion of each payment is taxable income to you.
The repayment of loan is not taxable as it was not deductible when you made the loan.