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?
03840
3 Replies
Marketstar
Level 7
May 31, 2019 8:01:06 PM
You should deduct the actual amount of interest you paid in 2016-$10,369.
AeroTwin7
New Member
May 31, 2019 8:01:07 PM
All of that 10,369 is not interest - some of that is the loan. Payment consists of principal + interest ideally.
Marketstar
Level 7
May 31, 2019 8:01:09 PM
So noted, interest actually paid in 2016, is tax deductible as a business expense.