Hello
I’m starting a business and planning to cover the bootstrap cost with my Bitcoin - would appreciate a quick sanity check:
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Open a sole proprietor LLC - not a taxable event
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I am lending Bitcoin to the newly founded business. Loan terms are based on similar services (like 4.5% apy for 10 years) - not a taxable event
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Business sells borrowed Bitcoin to cover setup costs - Taxable event, cost basis is the rate at the time of the loan, not the rate I acquired Bitcoin in the past. For example: if business sells Bitcoin instantly after getting the loan, profit/loss is zero
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Business starts paying back the loan. Taxable event, interest profit on my side personally
Step 3 is the one I’m concerned about
Thank you so much
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