tirk82
Feb 24, 2012, 12:23 PM
Here's the story.
I invested into an existing business in 2011 in return for a particular percentage of business income. My relationship with the owner/partner went south after only 4 months and for whatever reasons we came to agreement that I sell back my stake to the owner/partner for exactly what I paid for it originally. Partner didn't have the money so we came to a re-payment agreement for the course of 2 years. I only collected about 25% of what ex-partner owes me in 2011.
1. Can I deduct all my portion of business expenses while I was at the business from my tax return?
2. Since I didn't make any money selling back my shares to my ex-partner, and in fact made a loss overall considering my business expenses while I was at the business PLUS the fact that I have only received 25% of what I was owed so for in 2011... DO I OWE TAXES TO UNCLE SAM ON THE SALE OF MY SHARES BACK TO MY PARTNER?
Please note, the business is files as an S corp in my ex-partners name. The partnership agreement was drafted by ourselves, as well as the exit agreement, and the re-payment agreement.
Any help is appreciated. Thank you for your time.
I invested into an existing business in 2011 in return for a particular percentage of business income. My relationship with the owner/partner went south after only 4 months and for whatever reasons we came to agreement that I sell back my stake to the owner/partner for exactly what I paid for it originally. Partner didn't have the money so we came to a re-payment agreement for the course of 2 years. I only collected about 25% of what ex-partner owes me in 2011.
1. Can I deduct all my portion of business expenses while I was at the business from my tax return?
2. Since I didn't make any money selling back my shares to my ex-partner, and in fact made a loss overall considering my business expenses while I was at the business PLUS the fact that I have only received 25% of what I was owed so for in 2011... DO I OWE TAXES TO UNCLE SAM ON THE SALE OF MY SHARES BACK TO MY PARTNER?
Please note, the business is files as an S corp in my ex-partners name. The partnership agreement was drafted by ourselves, as well as the exit agreement, and the re-payment agreement.
Any help is appreciated. Thank you for your time.