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April 13, 2023
Question

We got a loan from a business for a business, how do I enter that?

  • April 13, 2023
  • 1 reply
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1 reply

JosephS1
April 13, 2023

If you are asking how to enter in TurboTax business, a loan is simply a liability that becomes part of your balance sheet.  The entry process in TurboTax Business for loans under Federal Taxes, Balance Sheet, entering the balance sheet items, first assets, then clicking if you are complete in the balance sheet assets then liabilities.  Then loan will be entered at it's balances for the beginning of the year, in this case it appears it would be zero, then the balance at the end of the year.

 

 

The terms of the loan determines whether this is a short-term loan or a long-term loan.  Normally, loans between businesses are what are called "Demand" loans, meaning payable upon demand, and are considered short-term loans.  The loan documentation should show whether your loan will be considered short-term or long-term.

 

@lilsis8687 

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