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I'm a layman with 40 years experience in investments and project finance.
I use investment vehicles to lever my startup capital across year 1. The earnings from the investment vehicles are substantial. The investment earnings are immediately deployed to my project finance. I 'loan' the investment earning money to the project, and am repaid full cost of project beginning late in year 2, but primarily I am repaid during year 3 and 4. Some projects result in a loss some are wildly successful.
My questions:
A) Can I reduce my year 1 tax consequences on the investment earnings by this allocation to projects? (And if not how much should I reserve for tax consequences)
B) Is it smarter to 'invest' equity (from the investment earnings) into the projects versus loaning money to the projects as described above?
C) Is there a smarter way to help reduce the tax consequences on the investment earnings in years 1 and 2?
I appreciate your looking at this for me.
I use investment vehicles to lever my startup capital across year 1. The earnings from the investment vehicles are substantial. The investment earnings are immediately deployed to my project finance. I 'loan' the investment earning money to the project, and am repaid full cost of project beginning late in year 2, but primarily I am repaid during year 3 and 4. Some projects result in a loss some are wildly successful.
My questions:
A) Can I reduce my year 1 tax consequences on the investment earnings by this allocation to projects? (And if not how much should I reserve for tax consequences)
B) Is it smarter to 'invest' equity (from the investment earnings) into the projects versus loaning money to the projects as described above?
C) Is there a smarter way to help reduce the tax consequences on the investment earnings in years 1 and 2?
I appreciate your looking at this for me.