To be deductible expenses, a business expense must be ordinary, necessary and reasonable in amount. The part of that three-pronged test that seems to give taxpayers the biggest problem is the reasonable amount.
There are instances when you can write off interest on personal loans used for business purposes, such as injecting capital into an S corporation, multi-member LLC, partnership or C corporation. But keep in mind that interest expenses must be classified into one of four categories (see box at the bottom of this article for details).
Getting back into work can be challenging when returning from a well-earned vacation. Now that you’ve rested and feel reinvigorated, this is an opportunity to reevaluate aspects of your company’s financial environment and move forward productively. Here are 5 areas to focus on to get back in the swing of things:
