I have owned a carpet cleaning business for the last 5 years.
I just recently sold it. Here is my question, when I first
began this business, I used my personal funds to purchase my
equipment and for start up costs. My company was a subchapter
S Corp. Over the years I have taken profits from the business
and paid taxes on these profits. I also depreciated my
equipment. However, I have never been repaid for the initial
money I put into the company out of my personal funds.
Shouldn't this reduce my basis and thereby decrease the
capital gains taxes that I own on the sale of my business?
I would appreciate any help you could give me.