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Level 2
posted Apr 14, 2025 2:42:25 PM

S-Corp and Investment Interest Expense

If an S-Corp deducts interest borrowed by the owners to fund the business, can the owners also claim the interest paid an investment interest expense on their personal return?

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1 Best answer
Expert Alumni
Apr 14, 2025 3:45:57 PM

No, the owners can't deduct interest that is deducted by the business, as that would mean you were deducting the same interest twice.

2 Replies
Level 2
Apr 14, 2025 3:04:17 PM

To be clear, the S-Corp deducted the interest paid as a business expense in determining net income.

Expert Alumni
Apr 14, 2025 3:45:57 PM

No, the owners can't deduct interest that is deducted by the business, as that would mean you were deducting the same interest twice.