I have a start up that received 10k award from a business competition. I formed LLC to start my business, now my question is how can I minimize my tax reliability.
1) Should I state in my return that I loan my startup 10k for this business (if so how)
2) This is income to my business, if so how do I file this?
About myself, I'm a recent graduated student with no income or work, I have $11k of student loan on me (which I can pay off monthly in 10 years).
Recently I used turbotax, but it shows that I still have tax reliability for federal return, since $10k is my only income for the year and I am independent for the past two years already, did I do something wrong here?
The simple answer is to spend the money. You have one year to spend the $10K you won. It shouldn't be hard. Wasn't the point of the prize to help you finance your first efforts? Did you buy a computer? There you go. You pay taxes on the profit.