topic Thanks!! in Get your taxes done using TurboTax

Can I claim my Square Capital Loan Payments ?

lmt37 — Thu, 06 Jun 2019 05:20:47 GMT

I use square to process credit cards, they offer capital advances on future credit card sales, can I claim the interest @ 13%... make small payments based on my amounts processed. Thanks!

Yes. You can and should claim the interest you pay as a...

DDollar — Thu, 06 Jun 2019 05:20:49 GMT

Yes. You can and should claim the interest you pay as a business deduction.

Thanks!!

lmt37 — Thu, 06 Jun 2019 05:20:50 GMT

Thanks!!

You're welcome! I'm glad I could be of help. Thanks for...

DDollar — Thu, 06 Jun 2019 05:20:52 GMT

You're welcome! I'm glad I could be of help. Thanks for using TurboTax!

How do you figure it out?take 13% away from the loan amount

candcampbell — Thu, 06 Jun 2019 05:20:53 GMT

How do you figure it out?take 13% away from the loan amount

Re: Can I claim my Square Capital Loan Payments ?

Cjbonilla — Thu, 18 Jun 2020 06:03:30 GMT

Hi there!

I have taken a few square capitol loans out before and paid them all off, but I have never written them off in my taxes. Before I submit my 2019 taxes, I wanted to know where do I put this deduction?
also, to be clear, I am not able to write off the loan amount or the total that was paid, correct? I can only write off the fixed rate interest that was added to the loan amount upon accepting the fixed rate loan from square capitol?

Re: Can I claim my Square Capital Loan Payments ?

HikingStick — Sun, 28 Feb 2021 18:23:09 GMT

I realize this is a very late response for your question, but you should check with an actual CPA. Square loans do not charge interest. They are financed by a flat rate loan fee based on the amount you borrow. I know that sounds like interest, but I'd let a financial professional make the exact determination for you.

Re: Can I claim my Square Capital Loan Payments ?

ThomasM125 — Mon, 01 Mar 2021 20:35:00 GMT

Even if the loan fee may not technically be considered interest expense, it would represent a necessary and normal expense of doing business, so it can be deducted as a business expense. So, it will either be deducted as interest expense or bank/loan fees.

Interest expense is broadly defined as a fee associated with borrowing money that is based on a percentage times the amount borrowed.