RobertG
Expert Alumni

Get your taxes done using TurboTax

Loans are not income, so the loan is not taxable when you receive it, and not deductible when you pay it back.

 

You can deduct the interest paid on the loan if the loan proceeds are used to pay business expenses.

 

You can also deduct or depreciate the business expenses you pay with the loan.

 

The loan is just a liability on your books, it does not affect your profit or loss.

 

 

 

 

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