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Do i include money i loan my business as part of the total income or put it seperately somewhere else

Forum|Forum|7 years ago
June 6, 2019
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i loaned my business some money how do i report it

TurboTax Business Windows

Best answer by MinhT1

Money that you loan to your business (partnership, LLC or S-Corp) is not counted as income of your business. It is only reported on the balance sheet of the business as a loan from members (or shareholders).

If the loan bears interest, it is a business expense for your business. And you must report this interest income on your personal tax return.

M

MinhT1Answer

Money that you loan to your business (partnership, LLC or S-Corp) is not counted as income of your business. It is only reported on the balance sheet of the business as a loan from members (or shareholders).

If the loan bears interest, it is a business expense for your business. And you must report this interest income on your personal tax return.

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danielsjrd

ok, so how do i account for the money loaned to the llc or is there a way to get a credit for the money loaned??

A

Anonymous_

Employee

@danielsjrd wrote:

ok, so how do i account for the money loaned to the llc or is there a way to get a credit for the money loaned??

You do not get "credit for the money loaned" in the form of an income tax deduction. Rather, your loan to the LLC (assuming it is a multi-member LLC) is really nothing more than a balance sheet entry (an entry for loans from partners and cash).

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lrinco

The Employee Retention Credit has totally changed my tax profile and I'm confused. My S corp usually pays for my car and other costs. Now my S corp income is MUCH lower, but I have this Employee Retention Credit that needs to go out of the S corp as W2 pay. Am I stuck with a much higher W2 income along with much lower overall income? Can I loan my S corp money for the car and other costs?