"There's no income or tax effect on loans." I see how that's true if I loan cash that's paid back, but when it comes to the loan being by using a personal credit card that makes it on a 1099K that seems like there is a tax effect as it's now being reported as income/profit.
Isn't this what's happening:
Business makes $100 profit selling on eBay. Business uses that money to pay shipping expenses. Tax wise it's $0 profit.
Business "makes" $100 from loan through credit card that shows up on 1099k. Business uses that money to pay shipping expenses. Tax wise it's $0 profit. HOWEVER, now business has to make another $100 to pay me back, so at the end tax wise it's $100 profit all because of that 1099K.
