My husband and I entered into a business argeement in 2012, with a third
party and gave him a certain amount of money for this deal. We later learned
that he did not comply with the agreements. We demanded our money back but he
will not return our money.The incident has since been reported to the FBI and
he has also done this to other individuals.
Can we claim this NOL for this business or do we report it as a bad debt on
our personal taxes?
I had a Sole Propriortorship licence for 2012 , but my husband also signed
the agreement.
Which IRS forms will we use?
You need to get both an attorney and a CPA. The attorney should be able to go
after this person. The CPA can look at your specific financial situation and
describe the best method to either reduce your other tax burden or reduce the
effects of your loss. But, do know that, as it sounds to me, that as a sole
proprietorship, you are your business and your business losses effect your
directly and second, investing in another organization or venture but not
directly working in that venture is considered a passive investment for which
there are very little protections - but, again, I am not a CPA and only a CPA
can give you the best advice for your particular situation.
JGabriel | Community Moderator | 3/6/2013 - 10:31 am
BMT | Window Shopper | 3/4/2013 - 8:54 am
after this person. The CPA can look at your specific financial situation and
describe the best method to either reduce your other tax burden or reduce the
effects of your loss. But, do know that, as it sounds to me, that as a sole
proprietorship, you are your business and your business losses effect your
directly and second, investing in another organization or venture but not
directly working in that venture is considered a passive investment for which
there are very little protections - but, again, I am not a CPA and only a CPA
can give you the best advice for your particular situation.
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!