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Groco Weekly
Weekly Wealth Building Tips Issue #115
September 17th, 2007

 

in this issue...
  • Lending Money to Your Corporation
  • How To Raise Venture Capital Successfully
  • Back-to-School Tax Breaks and Education Related Deductions
  • Tax Traps for New Real Estate Investors

  •  
    How To Raise Venture Capital Successfully

    Before you knock on any doors on Sand Hill Road, you must know a little bit about the elite breed of venture capitalists. These are the eagle-eyed guys looking out for that extra special business idea which can make them bucket-loads of money in quick time. While there are thousands of firms, your search for one can be simplified by using a directory such as VCgate.


     
    Back-to-School Tax Breaks and Education Related Deductions

    With the new school year now under way, the Internal Revenue Service today reminded teachers, parents and students that saving receipts and keeping good records can help them take advantage of various education-related deductions and tax breaks on their 2007 federal income tax return.


     
    Tax Traps for New Real Estate Investors

    Perhaps one shouldn't be surprised that new real estate investors fall into the same tax traps again and again. But just because some other newbie makes these mistakes, that doesn't mean you need to. You just need to know where the traps are so you avoid them.


     

    IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document.


     
    Lending Money to Your Corporation
    By Alan L. Olsen, CPA

    Starting a business takes a substantial amount of money and effort. However, there are right and wrong ways to go about lending money to your corporation. If you want to lend money to your corporation, you should properly document the transaction. If you give money to your business to purchase inventory and the company defaults on the loan, you may be qualified to write off the loan as a business debt versus an investment loss. A business debt can be offset against other ordinary income such as W-2 income, interest and dividend income. A business debt can result in creating a net operating loss on your individual return when you don't have enough income to offset the business loss.

    Read On...
     


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