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James Millar
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Nga, post: 268513, member: 117032 wrote:
I have a question,

I have received a personal loan and have now as a shareholder want to give part of this loan to the company to start up.
What is the best way to do this in regards to tax?

I gave a few questions.

If I loan it to the company will I have to personal declare the the whole loan repayment to me as a income? Or just the interest? As I still have to pay the personal loan off myself. Is there a way of not having it effect my personal income?

When the company pays me back in instalments, is the whole amount seen as a deductible expense? (This loan would be paying for the putchase of company assets and setting up a website, advertising etc (start up).

Is it possible to just have gifted the loan to the company as a start up? What are the tax implications of this? Is it now seen as a income of the company and taxes?

Thank you for your help

The answer as to whether to treat the funding as debt or equity depends on your personal tax circumstances. There may be concessions and rebates available in treating as equity depending on a range of factors.

In short – you need to engage a professional accountant to review and advise.

Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900