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We used some of my spouses income to help invest in my business, can he claim it on his returns?

Newbie

Views 117

Replies 3

Because of covid, my income this year has dropped off quite a bit. 

 

Normally, I am able to fully support my business with just my income from the business, but this year, we've used a lot of my husbands income to invest in new materials and machinery for my business to take it in a new direction.  Can he claim it on his returns?  If not... how do I claim the overage spend on MY returns?

 

 

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Most helpful response

Devotee

Replies 0

Essentially fill out your tax return as if you paid for the goods.

 

It would be worth creating a document outlining what amounts your spouse paid for (i.e. what monies were loaned to you) and keep the receipts with that.

3 REPLIES 3

Devotee

Replies 2

Essentially you have borrowed money from your spouse, and spent it in your buisness. Those amounts should be claimable on your return.

Newbie

Replies 1

Thank you so much!  So I claim it on my return as a loan, and don't put anything on his return?  Or do I need to make any kind of special notation on his return stating its an investment into the business?  Techically, we both own it, but it's under my name, so its a bit hairy. I'm just trying to make sure I notate this correctly on all my returns.  

Most helpful response

Devotee

Replies 0

Essentially fill out your tax return as if you paid for the goods.

 

It would be worth creating a document outlining what amounts your spouse paid for (i.e. what monies were loaned to you) and keep the receipts with that.