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Returning Member
posted Feb 17, 2022 6:23:18 AM

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
Expert Alumni
Feb 17, 2022 6:35:35 AM

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

Returning Member
Feb 17, 2022 7:01:11 AM

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

Expert Alumni
Feb 17, 2022 8:17:13 AM

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.