can i deduct interest paid on a business loan for my LLC

samsona38 · ‎February 8, 2025

I hope i can do this.

DianeW777 · ‎February 8, 2025

Yes, you can deduct interest on a loan that was obtained and proceeds used for your business. Do not deduct any interest from your business return if the proceeds were used for personal purposes (not for your business need).

This would be considered as 'other interest' as opposed to mortgage interest. General examples would be a credit card or a business loan from a bank or other financial institution.

Note: If this happens to be a single member limited liability company (SMLLC) it would be reported on Schedule C. If a partnership using Form 1065 or an S-Corporation using 1120S then the expense would be reported on those forms.

@samsona38

[Edited: 02/08/2025 | 12:41 PM PST]

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View solution in original post

DianeW777 · ‎February 8, 2025

Yes, you can deduct interest on a loan that was obtained and proceeds used for your business. Do not deduct any interest from your business return if the proceeds were used for personal purposes (not for your business need).

This would be considered as 'other interest' as opposed to mortgage interest. General examples would be a credit card or a business loan from a bank or other financial institution.

Note: If this happens to be a single member limited liability company (SMLLC) it would be reported on Schedule C. If a partnership using Form 1065 or an S-Corporation using 1120S then the expense would be reported on those forms.

@samsona38

[Edited: 02/08/2025 | 12:41 PM PST]

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**Mark the post that answers your question by clicking on "Mark as Best Answer"