Non partner LLC contributions. - Tax Forum - Tax Help Forum, Payroll Tax Forum, Business Tax Forum, Tax Questions, Free Tax Advice

EO4U LLC · 12-22-2009, 04:54 PM

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My wife has opened a one person LLC on May 18,2009. I am not listed as a partner in the business.To date, $0.00 money has been made with the business. She has plans to move the business from the home office into its own dwelling. The business office is used exclusively for the business. Currently the utility (telco and HSD, domain and website) expenses are separate from the home expenses.

I give (invest) my wife by giving her money to keep everything operational until she begins to stand on her own.

Are these expenses deductable?

Do I file taxes on what is given to her for the business as an investment (even though I have no part in the company)?

or

Does the LLC file the expenses as a lost.
Does my wife file separate and include the money I gave her as a loss as business related expenses?

What forms should she file?

Thanks in advance for the guidence.

Skyhawk · 12-31-2009, 02:52 AM

The money you give your wife for her business is a gift to her from you and is NOT deductible by you. Your wife invests the money in the LLC and the amount invested is NOT currently deductible as it is part of her basis in the "membership interest" in the LLC, that is it is a contribution to capital. If/when she sells the business the increased basis will be used to determine gain or loss on the sale.