Question

Personal loan for business credit card consolidation

Forum|Forum|4 years ago
December 26, 2021
2 replies
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If I am getting a personal loan, but using it for credit card consolidation for credit cards that have only been used for my business, am I able to deduct the interest on the personal loan? None of the money is used for personal reasons. Only business credit card consolidation. (That are on on personal credit cards only used for the business.)

Not A Product Question

B

Bsch4477

Employee

Since the loan is used to pay business debt it is considered a business loan so interest paid for that loan is deductible.

Carl11_2

Employee

Keep in mind that tracing rules may apply here. If audited, you need to be able to "prove" what the money was used for. If you can't prove it, then the interest deduction will be disallowed.