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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
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

Resolved Question:

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

How much deduction can I get?
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

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
Expert:  Megan C replied 2 years ago.
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.