Loan interest in Form 1120

[EvaEvtimova]

Where I need complete the loan interest expense in Form 1120? The interest is paid to the related party. Are there any specific rules for this kind of expense?

[tagteam · Accepted solution]

Line 18 on the form and there are rules.

See https://www.irs.gov/instructions/i1120#idm140228279777024

Specifically, in this instance, there could be an issue if the loan is below-market-rate.

NOTE: In TurboTax Business, click the Federal Taxes tab, click Deductions, and then click the Start button to the right of Common business expenses.