Are personal loans deductible from business taxes?

Chica asked:


Are personal loans deductible from business taxes??? if a family member is giving me 165000 as a loan for my business…will i be able to deduct it from my business taxes?? i have a corporation.

Ernest

Tags: Family Member, Loan Business, Taxes Personal

This entry was posted on Tuesday, January 6th, 2009 at 5:08 am and is filed under Personal Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Are personal loans deductible from business taxes?”

1. David545 Says:
   January 9th, 2009 at 5:31 am

   The loan is not deductible as an expense, since it is money added to your cash flow.

   Once the money is in your business account, it you spend it for business-related items, it would be deductible (if that expense were a deductible item, not one that had to be capitalized.)

   The interest you pay on the loan to the family member is deductible.

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