topic Should I enter a business loan amount as income? in Business & farm

Should I enter a business loan amount as income?

comichaven327 — Mon, 03 Jun 2019 18:41:57 GMT

No, you shouldn't. The loan amount goes on your business...

AmandaR1 — Mon, 03 Jun 2019 18:41:59 GMT

No, you shouldn't. The loan amount goes on your business Balance Sheet as an obligation you owe (liability), offset by the increase in the asset of your bank account (with the cash).

As you make payments on the loan, the payments decrease cash and the liability decreases, but also a portion of the payment is for interest expense. You can deduct interest expense from each payment and write this off for taxes.

Re: No, you shouldn't. The loan amount goes on your business...

That HVACLife — Mon, 24 Feb 2020 17:25:54 GMT

May I ask where do you insert the interest paid on the loans?

Re: Should I enter a business loan amount as income?

RobertG — Mon, 24 Feb 2020 17:32:34 GMT

The interest on the business loan is claimed on the related business schedule, such as the Schedule C, if you are self employed.

@That HVACLife