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AeroTwin7
New Member

How do I calculate interest paid on a working capital loan?

I have a working capital loan for 24,000. Interest charged $10,386. Total I owe is $34,386. I've paid 10,369 back this year. What part of is considered "interest" for tax deduction?

3 Replies
Marketstar
Level 7

How do I calculate interest paid on a working capital loan?

You should deduct the actual amount of interest you paid in 2016-$10,369.

AeroTwin7
New Member

How do I calculate interest paid on a working capital loan?

All of that 10,369 is not interest - some of that is the loan. Payment consists of principal +  interest ideally.
Marketstar
Level 7

How do I calculate interest paid on a working capital loan?

So noted, interest actually paid in 2016, is tax deductible as a business expense.
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