turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

doingmyowntax
Returning Member

How to pay myself back for personal loan to buy land for my business

My spouse and I used our own money to purchase land under our 2 member LLC owned by myself and my spouse.  Since business has a profit now and the title of the land is under the LLC.  How do I pay ourselves back for the no interest loan to purchase the land?  Not sure where to enter this in turbo tax.  

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Best answer

Accepted Solutions

How to pay myself back for personal loan to buy land for my business

@Rick19744 

 

It appears as if you simply made a contribution to capital (which can be returned to each member without consequence - unless the amount somehow exceeds your basis).

View solution in original post

How to pay myself back for personal loan to buy land for my business

Not unless you are keeping a balance sheet.

View solution in original post

6 Replies

How to pay myself back for personal loan to buy land for my business

@Rick19744 

 

It appears as if you simply made a contribution to capital (which can be returned to each member without consequence - unless the amount somehow exceeds your basis).

doingmyowntax
Returning Member

How to pay myself back for personal loan to buy land for my business

Do I need to report this in TT on any form?

How to pay myself back for personal loan to buy land for my business

Not unless you are keeping a balance sheet.

doingmyowntax
Returning Member

How to pay myself back for personal loan to buy land for my business

Do I deduct the personal loan repayment as an expense from the business?  I estimate that it will take over 10 years to repay the business personal loan to myself.

How to pay myself back for personal loan to buy land for my business

The loan repayment is not an expense.

How to pay myself back for personal loan to buy land for my business

A few comments / questions:

  • Is the LLC filing a 1065 (you don't mention whether you are in a community property state)?
  • If the LLC is a separate entity and filing its own tax return:
    • You indicate you used your own money to purchase, yet the purchase was titled in the name of the LLC
    • Did you contribute $$ to the LLC?
    • It's not really a loan if you are not charging interest.  The IRS will just take the position that this is a contribution to capital (this depends on the response to a previous question)
  • As @Anonymous_ noted, this transaction appears to only be impacted by balance sheet accounts
  • Need to respond to the above to be more specific
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question