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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Can I get business interest deduction from my fathers personal

This answer was rated:

Can I get business interest deduction from my father's personal loan to my company?

How much deduction can I get?

Megan C :

Thanks for your question, and thanks for using JustAnswer.com

Megan C :

You can deduct any interest on loans provided to your company. Your deduction would be the amount of interest you paid.

Customer:

Hi Megan

Customer:

ok

Megan C :

Hello

Megan C :

Your loan should be a reasonable rate - what is experienced in the market

Customer:

what is a reasonable rate?

Megan C :

What is experienced in the market - what you could get a bank loan for

Customer:

ok

Megan C :

I mean, you don't want to pay 20% to your dad just so you can get a huge deduction, when bank rates are only 7%

Customer:

ok. Got it

Megan C :

Is there anything else that I can assist you with today?

Customer:

Yes

Megan C :

Ok

Customer:

Does my father need to file for taxation for the personal loan if he is non resident alien?

Megan C :

Yes, he will have income from the loan and will need to file a tax return

Customer:

ok. Got it. Thx

Megan C and other Finance Specialists are ready to help you
Thanks Matthew for your positive rating. Please come back and visit me for any of your tax, finance, or social security needs. It was a pleasure working with you today.