I'm not an tax expert, but my question would be: Are you filing separate tax returns on the loan entity and the borrower entity?
If it is all inhouse, I would think that the interest would be considered retained equity.
It will wash no matter what because one entity will claim an deduction while the other an income.
Again, I'm not an expert on this.
Last edited by maat55 : 09-08-2009 at 04:34 PM.
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