Loans from shareholders or loans to shareholders go in the Balance Sheet as an asset or liability.
The loan itself is not a deduction... but when you use the proceeds to pay for company expenses, those expenses are deductible in your P&L... for example. You pay rent with the loan... the loan is not an expense but the rent it is. Payments to the loan reduces your note payable in the balance sheet... Payments are not expenses nor income..
Remember, for a loan to be a legitimate loan, you need to documented it as loan, with a Note Payable and paying interests , just like a loan from a Bank..
Hope it helps..
