For a small business, is operating capital tax deductible?

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For a small business, is operating capital tax deductible?

2006-11-09 03:51:58 · 3 answers · asked by pcnut4u 2 in Business & Finance ➔ Taxes ➔ Other - Taxes

What I'm calling operating capital is the money that would be used to purchase materials for the end product.

2006-11-09 05:09:26 · update #1

3 answers

The cost of the items purchased would be deductible, offset against income.

2006-11-09 09:22:27 · answer #1 · answered by Judy 7 · 0⤊ 0⤋

if you borrowed the capital and are paying interest, the interest is deductible. also, capital used 4 biz operations (the expenses u incur in the operation of the biz), - not all, but most - r tax deductible.

2006-11-09 04:07:27 · answer #2 · answered by TaxGirl 2 · 0⤊ 0⤋

no! is the cash in your pocket right now deductible? Only the interest on the capital is if the funds are borrowed

2006-11-09 03:55:40 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋