Assume I owned a business:
Ronda’s Crporation,( a calendar year, accrual basis taxpayer) had the following transactions during 2006, its second year of operation.
Taxable Incom-320,000
Federal Income Tax Liability-108,050
Interest Income from tax-exempt payors-4,000
Meals and Entertainment expenses-2,000
Premiums paid on key employee life insurance-2,500
Increase in cash surrender value attributable to life insurance-600
Proceeds from key employee life insurance policy-120,000
Cash surrender value of life insurance-15,000
Excess of capital losses over capital gains-11,000
MACRS deductions-24,000
Straight 179 expense elected during 2005-90,000
Organizational expenses incurred in 2005-12,000
Dividends received from domestic corporations(less than 20% owned)-20,000

I will use the LIFO inventory method and its LIFO recapture amount increased by
9,000 during 2006. I also sold property on installent during 2005.. The property was sold for 30,000 and had as adjusted basis at sale of 22,000. During 2006 , I received a 10,000
Payment on the installment sale. I elected to amoritize its qualified organizational expenses in 2005. Please help me to compute Ronda’s Corporation current Earnings and Profit.

My husband opened a business in 2006 in which with a combination of a personal and small business loan we were able to start up. In 2007, things have been rough and we had to deposit another ,000 of our own cash into the company just to make payroll and rent. The business just closed last month, March 2008. Can I deduct this personal cash, ,000 ,somewhere on our joint personal IRS taxes? Unreimbursed business expenses….capital losses…gambling losses (just joking?) I can’t seem to get a straight answer from anyone. Anyone have experience with this? Thanks!