Do I need to claim a business loan as income for my small business?

neatsweetsbaking · ‎January 29, 2022

I applied for and received a loan for my small business this year. I have already entered the interest I have paid on my return, but do I have to enter the loan amount as income?

Rick19744 · ‎January 29, 2022

No. The loan is not income and the principal payments to reduce the loan are not deductions.

Only the interest expense portion impacts your business Sch C (assuming this is what you file).

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

neatsweetsbaking · ‎January 29, 2022

This is what I thought, but thank you for confirming!

Rick19744 · ‎January 29, 2022

You are welcome

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

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Do I need to claim a business loan as income for my small business?