Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Can I treat money lending as a schedule c?

CS
Level 1

My new client lends money to various cash strapped organizations.Can i treat that as a schedule c and benefit from the 20% reduction of taxable income.

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
itonewbie
Level 15

May or may not.  I suppose you'd need to assess whether these loans are investments and, if not, whether it rises to the level of §162 trade or business by reviewing the kind of activities that are involved as well as whether these were regular, continuous, and substantial.  You may also like to research this further for previous rulings and administrative guidance, if any.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
1 Comment 1
itonewbie
Level 15

May or may not.  I suppose you'd need to assess whether these loans are investments and, if not, whether it rises to the level of §162 trade or business by reviewing the kind of activities that are involved as well as whether these were regular, continuous, and substantial.  You may also like to research this further for previous rulings and administrative guidance, if any.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers