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vdramosfam
Returning Member

Wrote a personal loan to my LLC to fund initial operations. How can I claim that on my personal taxes?

Wrote a loan to acquire goods for my newly formed LLC.  Was it the best way to capture this on my taxes. 

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3 Replies
JohnB5677
Expert Alumni

Wrote a personal loan to my LLC to fund initial operations. How can I claim that on my personal taxes?

You will not report the loan value on your tax return.  However, you should report any interest that you received on your personal return.

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vdramosfam
Returning Member

Wrote a personal loan to my LLC to fund initial operations. How can I claim that on my personal taxes?

so, writing a personal loan does not reduce my personal income liability?

JohnB5677
Expert Alumni

Wrote a personal loan to my LLC to fund initial operations. How can I claim that on my personal taxes?

No, writing a personal loan to an LLC will not affect your personal tax return.  It is expected that the loan will be paid off, and you would be made whole again.  However, the interest will be income to you and a deduction for the LLC.

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