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Money used to start a business is tax deductible. Make sure you keep records of all your business transactions. Even if you get a small business loans or a business credit card, the interest on those loans are tax deductible. These moneys are more of business capital or operating costs and not income

Money received to start a business can be viewed in one of 2 ways and thus therein lies your tax liability!

1st - If money received is income than there will be a tax levied against that revenue by the IRS.

2nd - If money received is 'capitalized' by the business then there will be no tax assessed by the IRS.

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13y ago

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