I made a loan to an associate for his business. Is the interest on this loan considered capital gains or investment income? How would it be taxed?

[12rer4w6w7eyuhti989tydggher644er · Accepted solution]

See https://www.irs.gov/taxtopics/tc403

Taxed as ordinary income not subject to self-employment tax (unless you are in the business of making loans).

[htalbot]

Thanks for the quick reply.