Comments on: Starting a biz: What you can write off http://smallbusiness.blogs.cnnmoney.cnn.com/2009/04/20/starting-a-biz-what-you-can-write-off/ Editors from FSB magazine answer your pressing small-business questions. Tue, 15 Dec 2009 12:52:55 +0000 http://wordpress.com/ hourly 1 By: Noah Gordon, Tucson, AZ http://smallbusiness.blogs.cnnmoney.cnn.com/2009/04/20/starting-a-biz-what-you-can-write-off/#comment-2068 Noah Gordon, Tucson, AZ Sun, 15 Nov 2009 02:52:45 +0000 http://askfsb.blogs.fsb.cnn.com/?p=1013#comment-2068 You cannot write off the money received from the loan and that is usually not considered business income. However, you can deduct the principle and interest paid on the loan during the loan period, this is confirmed in an article at Loan.com (http://www.loan.com/business-loans/business-loan-finance-what-to-do-when-you-file-taxes.html): “Business loans are treated as an expense, allowing the business to deduct the principal and interest on the loan during the loan period.” Principle and interest paid on a loan during the loan period is considered a business expense. In order to take advantage of the deduction you must report the total amount of the loan. This deduction allows you to decrease your taxable income. The borrower of the business loan will get a 1099-INT from the lender and must give this to their accountant for inclusion in their tax forms. Noah http://www.flowersrieger.com/ You cannot write off the money received from the loan and that is usually not considered business income. However, you can deduct the principle and interest paid on the loan during the loan period, this is confirmed in an article at Loan.com (http://www.loan.com/business-loans/business-loan-finance-what-to-do-when-you-file-taxes.html): “Business loans are treated as an expense, allowing the business to deduct the principal and interest on the loan during the loan period.” Principle and interest paid on a loan during the loan period is considered a business expense.

In order to take advantage of the deduction you must report the total amount of the loan. This deduction allows you to decrease your taxable income. The borrower of the business loan will get a 1099-INT from the lender and must give this to their accountant for inclusion in their tax forms.

Noah
http://www.flowersrieger.com/

]]> By: ilya bodner http://smallbusiness.blogs.cnnmoney.cnn.com/2009/04/20/starting-a-biz-what-you-can-write-off/#comment-1832 ilya bodner Sun, 07 Jun 2009 20:17:21 +0000 http://askfsb.blogs.fsb.cnn.com/?p=1013#comment-1832 Make sure to first consider how you obtained financing for this business. In other words, if you used personal collateral then it may be harder to make the connection. This is why small business owners are often encouraged to keep personal and business credit/finances separate. Sincerely, Ilya Bodner Small Business Owner Initial Underwriting Group Make sure to first consider how you obtained financing for this business. In other words, if you used personal collateral then it may be harder to make the connection.

This is why small business owners are often encouraged to keep personal and business credit/finances separate.

Sincerely,

Ilya Bodner
Small Business Owner
Initial Underwriting Group

]]> By: Alex N http://smallbusiness.blogs.cnnmoney.cnn.com/2009/04/20/starting-a-biz-what-you-can-write-off/#comment-1714 Alex N Thu, 23 Apr 2009 03:09:39 +0000 http://askfsb.blogs.fsb.cnn.com/?p=1013#comment-1714 While a loan is not something you can write off - you can write off almost all the expenses that your business incurs in the course of its daily operations and yes of course the interest that you pay on that loan! Save those receipts! Alex N http://www.smallbusinessplanresources.com While a loan is not something you can write off – you can write off almost all the expenses that your business incurs in the course of its daily operations and yes of course the interest that you pay on that loan! Save those receipts!

Alex N
http://www.smallbusinessplanresources.com

]]>