topic How do I record self-charged interest on form 1120-S? in Get your taxes done using TurboTax

How do I record self-charged interest on form 1120-S?

ac-control — Mon, 16 Feb 2026 19:44:28 GMT

I loaned money to my S-corp and we are charging interest as an expense. I have taken withdrawls from that account.

1. Should I record interest portion of that loan repayment as a expense?

2. Should I record that portion as an income on the K-1 form?

3. How should record this in QBO (expense account or income account)?

4. How should I record this in TT desktop (form 1120-S)?

ac-control — Mon, 16 Feb 2026 19:56:10 GMT

As a clarification, this is for non-passive activity.

MaxA1 — Tue, 17 Feb 2026 00:22:10 GMT

Answers to your questions:

Yes, this is an expense for the company.
No, this wouldn't go on your k-1. The interest income will be entered separately on your personal return. Treat it as if you received a 1099-INT from the company.
Since this is an expense for the company, you would record this in the corresponding expense account.
This would be recorded as interest expense in TurboTax, for the business, and interest income in TurboTax, on your personal return.

ac-control — Tue, 17 Feb 2026 17:13:35 GMT

Thank you! I could not find online that clearly states about the interest income on personal TT vs. TT Business.