Hi, I use my home equity line of credit to purchase business inventory. Do I account for the interest under business expenses? If not do I get same deduct under person

Forum|Forum|7 years ago
June 1, 2019
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MarilynG

Level 15

Yes, you can deduct the interest you paid on the home equity loan as a business expense, since you used the loan proceeds to purchase business inventory.

Or, you can claim the interest as a personal deduction, if the loan was under $100,000. You might try entering it separately in each area to see which method is most beneficial for you.

Here's more info:

https://turbotax.intuit.com/tax-tips/home-ownership/deducting-mortgage-interest-faqs/L4a9KF9mI#loans

If you claim a home office, enter your mortgage interest in the Home Office Section first. Delete your entry in the Personal section.

Here's instructions relating to that topic:

https://ttlc.intuit.com/replies/6191781

Edited 4/10/18 11:06 am

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antiquedollsAuthor

Level 2

Need more help. I put the interest under business expenses. However, when I did my personal side, it asked if I had a 1098 (mortgage interest) and I put yes. So it also put the interest on my personal deductions. It was used for purchasing inventory, I don't understand how to get it only on the business side. Do I put no, I did not have a 1098 on the personal side??