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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