Help on self funding my LLC

[Erik Garland]

Okay BP family. I've funded my own portfolio since inception. Please help with the tax implications. I have made my LLC personal loans from myself with reasonable interest rate, amortization, etc. I understand the LLC can deduct the interest paid, and I have to report income received personally.

"I'm lost on the capital gains issue. If my loan to equity amount is high then I can be taxed capital gains"

Is the LLC or me personally taxed? How? How do I determine if I meet that criteria? Is there a way around it?

Geez, I feel like you get shafted every which way trying to keep a business!!

Thanks!!!

[Roman M.]

Bad debt is when you borrowed money from a lender and they could not collect and they write it off as a loss and give you a 1098 as if you got income.

Interest earned is taxable. Principal is not taxable.