Jump to content
ATX Community

Negative equity


ILLMAS

Recommended Posts

Let's say Joe & Larry are partners (1065) for the last couple of years they have been developing a product and have incurred expenses but no income what's so ever, their capital is negative and they have been loaning money to the partnership to cover expenses.  Yes this has produced loses over the years to each partner, what options do these partner have to come up to zero?    

Link to comment
Share on other sites

40 minutes ago, cbslee said:

They want to call their funds loans but in reality they have made capital contributions, which for tax purposes is the better way to go.

Sounds similar to this:  A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...