How do I go about documenting this and is it tax deductible?
Documentation is going to vary depending on corporate structure and type of investment, but essentially it's going to be paperwork stating the date of the transfer, the amount, and what you received in return. Debt investment is different than equity.
Capital contributions (equity investment) and loans (debt investment) are not deductible until they are deemed uncollectible.
Answered 7 years ago
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