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thevalleytrader
New Member

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

 
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re2boys
Level 9

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

If your Schedule C business borrowed money, only the interest paid on the loans would appear on your income tax return as a business expense.  Neither the loan proceed nor the loan repayments would appear on Schedule C.  The loan is not income and repayment is not an expense.

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9 Replies
DoninGA
Level 15

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

Personal loans and the interest paid on the personal loan is not reported or deductible on a tax return.
SweetieJean
Level 15

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

OP's screen name suggests this might be a business.
thevalleytrader
New Member

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

This was business cash advance loans only done in regards to my business monthly deposits
thevalleytrader
New Member

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

I paid back $65,000 on these business loans in 2016
thevalleytrader
New Member

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

I am a business. I took out 4 loans called merchant Cash advances. High interest
SweetieJean
Level 15

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

Payments of principal are never deductible.  Interest on a business loan is deductible by the business.
However, you have not indicated the type of business: solo, S Corp, C Corp, Partnership.
VolvoGirl
Level 15

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

Loans you got are not income and are not deductible.  You only deduct the actual expenses you paid for using the loan money.  You can deduct the interest you pay on them.
SweetieJean
Level 15

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

And I suggest you look into alternate forms of financing.
re2boys
Level 9

I took cash advance loans 2015/2016 and my payments are over $65,000. It makes my income tax a negative $24,000. Was I to put the deposit into my total depoisit?

If your Schedule C business borrowed money, only the interest paid on the loans would appear on your income tax return as a business expense.  Neither the loan proceed nor the loan repayments would appear on Schedule C.  The loan is not income and repayment is not an expense.
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