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Returning Member
posted Dec 26, 2021 10:42:40 AM

Personal loan for business credit card consolidation

If I am getting a personal loan, but using it for credit card consolidation for credit cards that have only been used for my business, am I able to deduct the interest on the personal loan? None of the money is used for personal reasons. Only business credit card consolidation. (That are on on personal credit cards only used for the business.)

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2 Replies
Level 15
Dec 26, 2021 10:47:38 AM

Since the loan is used to pay business debt it is considered a business loan so interest paid for that loan is deductible. 

Level 15
Dec 27, 2021 6:18:54 AM

Keep in mind that tracing rules may apply here. If audited, you need to be able to "prove" what the money was used for. If you can't prove it, then the interest deduction will be disallowed.