Finance Questions? Ask a Financial Expert for Answers ASAP
Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.
What did you do with the money?
The answer to your question depends upon what you did with the proceeds of the loan. If you used the loan for business purposes, then the related expenditures would be deductible as well as any interest paid on the loan.
If you used the loan proceeds for personal purposes, neither the expenditures nor the interest would be deductible.
However, if you used the loan for investments (stocks, bonds, etc.) that you may be able to deduct the interest as investment interest.
If you need to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Thanks again for using us for your tax and financial questions. You may get a short survey from the site; if it isn't too much trouble I would appreciate it if you would answer it; the survey results are used to rate our performance;
Hi sorry - so proceeds of the loan are treated as taxable income?
No. Not at all.
Only if you don't have to pay it back & it was given as a result of your services which is what you said in your question; but if it is an actual loan, there's no income involved.
The only question is whether or not there's some why for you to deduct any interest you pay on the loan.