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I apologize if this has been covered before.

DH has a business detailing cars (part-time). He started an LLC in May 2006. I have three questions:

1)I loaned the business y dollars to purchase some equipment and supplies, but I expect to get my money back (hence the word loan). Anyway, does he count the y dollars as an expense, or does he have to wait until he starts repaying the loan and count those payments as an expense?

2)Does whether he chooses to depreciate his property all the first year or over time have anything to do with how the loan is paid back? Common sense would tell me that the two are not related, but I just want to make sure.

3)He had seed money of x dollars to start the business. The attorney fees and various other business expenses were paid with this money. He pretty much breaks even with the expenses going out (van payment, gas, supplies) and the money that he gets from his clients. He cannot afford to pay himself, since that would leave no money for the expenses. Is there a way to reflect a salary on the tax return and claim that the business had a loss? or must he just put down that he broke even (although that would mean that we worked for free)?

Thanks in advance for your help!
Diat

*****I CROSS-POSTED TO THE TAX STRATEGIES BOARD*************
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