Quick business loan question

reptile411 · #1 (**permalink**) 09-07-2009, 11:45 PM

I am wandering ahead of time again. Ok really fast. I wrote myself a personal loan for some business equipment. The loan was 1200 @%10 for 3 years. Can I do this? I just realized how and I going to claim interest paid or the equipment if ultimately I am benefiting in the way of %10 on the loan? Any insight?

maat55 · #2 (**permalink**) 09-08-2009, 03:31 PM

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.