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September 10, 2019
Question

Construction loan as income

  • September 10, 2019
  • 1 reply
  • 0 views

I am a contractor with a residential construction business. I just completed building my personal home. During the construction loan, my business was closed and i received no business income except for i used just enough of my construction loan in order to satisfy my bills for rent, food, utilities and basic needs. I did 80% of the work on my home but never "billed" myself for the work that i did. Being my own contractor, I paid the subcontractors that i did use and also for all the materials and permit fees. My question is do i need to report  either the entire construction loan as taxable income ( which would necessitate claiming deductions for sub's, materials, fees, and mileage for my vehicle) or only the money that i used to pay my bills as income or neither?

    1 reply

    Critter
    Employee
    September 10, 2019

    A loan of any kind is NEVER reported as income no matter what the loan proceeds were used for. 

    cydeadAuthor
    September 10, 2019

    Thanks for your response, my loan officer had said she didnt think i would have to report it as income either.