ouroldfarm
07-13-2010, 08:17 AM
I'm new to this, and I've made the decision to keep working at my day job while building the company. I really don't want to go into debt right now in order to build the business, and I don't really need to as long as I can keep my job. Later on I would be willing to finance some capital expenditures in order to expand the business, but not until we have a good list of customers.
My question revolves around capital for the business.
If I'm providing my personal income to the business is that considered income as far as the business is concerned? Also if I make a "donation" of my personal property as capital to the business, for instance like a tractor or other piece of equipment, is that considered income for the business that will need to be reported to the IRS?
For example
1) if I put $10,000.00 of my own money into the company account is that income the company will have to report on its return?
2) if I give a piece of equipment with a FMV of $10,000.00 to the company is that considered income that the company will have to report on its return?
Also, how does this apply to fixed assets like buildings, water wells, land, etc. that were mine, but are given to the company, or perhaps leased by me to the company?
Thanks.
Steve
My question revolves around capital for the business.
If I'm providing my personal income to the business is that considered income as far as the business is concerned? Also if I make a "donation" of my personal property as capital to the business, for instance like a tractor or other piece of equipment, is that considered income for the business that will need to be reported to the IRS?
For example
1) if I put $10,000.00 of my own money into the company account is that income the company will have to report on its return?
2) if I give a piece of equipment with a FMV of $10,000.00 to the company is that considered income that the company will have to report on its return?
Also, how does this apply to fixed assets like buildings, water wells, land, etc. that were mine, but are given to the company, or perhaps leased by me to the company?
Thanks.
Steve