The amount you invest to start up and operate a business is usually called what?

• A. Taxable
• B. Depreciable
• C. Nontaxable
• D. Capital expenditure

Answer: (C)

When you fund a new business with your own money, that money isn’t treated as personal income to you. It’s a capital contribution—the owner’s investment in the business—so it’s nontaxable to you at the time of the infusion. The tax impact comes later, from profits, distributions, or depreciation of assets, not from the act of putting in your own start-up funds.

The other terms don’t fit as well. Taxable would imply you owe tax on the amount itself, which isn’t the case here. Depreciable refers to assets that can be expensed over time, not the initial funding itself. Capital expenditure describes spending on long-term assets, which is about what you buy, not the tax status of the funding you provide.