CS
Level 1
12-07-2019
12:19 AM
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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.
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itonewbie
Level 15
12-07-2019
12:19 AM
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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.
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