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Initial Investment.

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  • 04-09-2011 11:01pm
    #1
    connel42
    Registered Users Posts: 175 ✭✭


    Hi - I am torn between the accountancy and this page but hopefully a more practical answer here.
    I have a small business that is operating for the past few months.
    I also have a full time job on PAYE.
    I registered the business with revenue for tax purposes.
    This year I am happy to cover the set up and running costs which looks likely.
    So when I do a tax return in march for 2011 there will be no income.
    My capital investment is €13000 for the main equipment.
    I understand that I can write off 1/8th of the per year - Depreciation?
    My question is - can I treat the initial investment as a loan to the business so the loan must be repaid?
    If so - do I then write off 1/8th for depreciation annually and say €2000 per year as loan repayment?
    If I do this and the €2000 goes directly to me - is that it or do I have to pay tax on this?
    Sorry in advance if its a bit rambling but would like to start off the first trading year on the right foot.


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