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

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

Where does turbo tax report an LLCs interest expense paid to a member of the LLC?

We have an LLC which built and sold a speculative home in 2020.  My husband and I loaned the LLC most of the funds needed and supported that loan with a note from the LLC to my husband and me, with interest at  the IRS friends and family rate.  I have calculated the amount of interest that was paid but having trouble figuring out exactly where in Turbo Tax Business (we file a Form 1065 with K-1s) we will need to enter the interest so that is flows through to our K-1's.  Any advice?

Connect with an expert
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 Replies
M-MTax
Level 10

Where does turbo tax report an LLCs interest expense paid to a member of the LLC?

Read this article....https://www.thetaxadviser.com/issues/2018/oct/loans-members-llcs.html

It's an interest expense for the LLC if the loan is a legitimate loan so it's a regular deduction on the 1065 and it's interest income to the members.

JeffreyR77
Expert Alumni

Where does turbo tax report an LLCs interest expense paid to a member of the LLC?

You will enter your interest expense as a business deduction in TurboTax Business.  Navigate to Federal Taxes, Deductions, Common Business Deductions.

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies