Starting a biz: What you can write offApril 20, 2009: 2:57 PM ET
You don't get a tax break on money you borrow - but the interest you pay on your loans is fair game for deduction.
Bryanne Goetz, Orlando
I started a business from home this year. Can I write off the money that was loaned to me to start the company?
By Lenora Chu, CNNMoney.com contributor
You cannot write off money that was loaned to you. However, you can deduct the interest that you pay on the loan, says Martin Chan, a CPA of Philadelphia.
You can also claim any business expenses that may have been covered by the loan, such as office supplies and utilities, says Fullerton, Ca.-based CPA John Stoller.
In order to qualify as a tax deduction, these expenses must be considered both "ordinary" and "necessary," says Chan. In other words, they must be common and accepted in your industry, and also helpful and appropriate to your business.
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