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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?
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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.
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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.
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