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I loaned money how do I list this as an expense

I loaned money for the purchase of an investment property to a company.  where do I expense the loan?
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3 Replies

I loaned money how do I list this as an expense

So you gave someone money so they could buy a property ???   Are you a partner in the business ?  Is there proper loan paperwork for this transaction ?   Are they going to pay you interest ?    Did your sole prop business make the loan ?  

Carl
Level 15

I loaned money how do I list this as an expense

It's not an expense any way you look at it. When you loan money, that money is still "your" money and it's assumed you already paid taxes on it. However, when it's paid back you are expected to charge interest, report that interest as income and pay taxes on it. If you don't charge interest, then you will still pay taxes on "imputed interest".

TomD8
Level 15

I loaned money how do I list this as an expense

Here's some detailed info on "imputed interest":  

https://turbotax.intuit.com/tax-tips/tax-payments/irs-tax-rules-for-imputed-interest/L7UbulHpC

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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