I took a loan to start my business, is that listed as income?

[akamink14]

Hi-  I am a LLC and i took a loan for 20K to start my business, is this claimed as income on my Schedule C ? thank you 

[Anonymous_]

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@akamink14 wrote:

I am a LLC and i took a loan for 20K to start my business, is this claimed as income on my Schedule C?

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No. The loan simply goes on your books as a loan. It is not income and not reported on your income tax return (Schedule C, 1040). The interest paid will be tax deductible, however, if the loan proceeds are used for business purposes.

[ColeenD3]

No, this is not income. You did not earn it. You borrowed it and will have to pay it back. Since a Schedule C LLC is a disregarded entity, it is as if you personally took the loan. It would be the same as if you used your own money to get started.

[akamink14]

thank you !