What section of Turbo Tax Business do I record loan information

[That HVACLife]

1. Need to record original loan amount

2. Need to record Payback Payments

3. Need to record Interest

Thank you

[Critter]

What form are you filling out ?  1120 ?  1065 ?  1120S ?   

Who made the loan ?   Who is paying back the loan and interest ?

[That HVACLife]

1120 S

Our Company received the loan from a lender and we are paying it back in installment payments with interest.

[Carl]

In a nutshell:

Borrowed money is not your money. It never was, is not now and never will be. Not ever. So you don't report borrowed money as income. You don't pay taxes on money that is not yours. Period.

When paying back borrowed money, the interest paid each year can be deducted if the loan is a qualified loan. If the loan is not a qualified loan, then you have absolutely nothing what-so-ever to report on any tax return, concerning it. 

[That HVACLife]

Thanks for responding. I understand it's not our money but I am confused because I've been reading different articles that I thought were telling me to enter them in as liabilities on the balance sheet, something about unearned revenues or something like that....

Are you saying not to include loans anywhere in taxes, except for the interest part of it?

Does the term "qualified loan" pertain to loans from, let's say, blue vine or kabbage? Or does that have to do with mortgage?

[tagteam]

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@That HVACLife wrote:

Are you saying not to include loans anywhere in taxes, except for the interest part of it?

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As mentioned previously, interest paid would ordinarily be deductible.

The loan, itself, (principal amount) would be entered on the balance sheet on your return, assuming you are required to complete it.

See https://www.irs.gov/instructions/i1120s#idm140155512672816

[Critter]

If you have not set up your bookkeeping properly and are confused in this area I highly recommend you seek local professional help to be educated in this matter ... once your books are set up then you can file a tax return easily with just the balance sheet, asset listing  and P&L reports. 

[tagteam]

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@That HVACLife wrote:

1. Need to record original loan amount

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Record on Schedule L unless the S corporation's total receipts were less than $250,000 and the S corporation's total assets were less than $250,000.

[Carl]

I thought were telling me to enter them in as liabilities on the balance sheet,

Well, it *is* a liability to the borrower, so long as the borrower is required to pay it back. In other words, the borrower is "liable" for paying the borrowed money back to the lender.

It's become apparent that you don't have a complete understanding of how things work - particularly with the balance sheet. I would highly advise you to seek professional help, as you're not going to learn this stuff through osmosis.

[tagteam]

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@That HVACLife wrote:

...I thought were telling me to enter them in as liabilities on the balance sheet....

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They were telling you that because that is where the loan is entered - on the balance sheet.