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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15731
Experience:  15years with H & R Block. Divisional leader, Instructor
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If I took out a business loan consolidation loan to pay all

Customer Question

if I took out a business loan consolidation loan to pay all expenses and was going to put the rest into one of my rental companies as equity is a $335,000 alone and I only have $265,000 this basis in my company what do I do . will I'm have to pay tax on this
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.
Hello and thanks for trusting me to help you today. I am a tax adviser with over 20 years of experience.
A loan is not taxable unless it is forgiven by the lender. If you made a distribution to yourself from the company using some of the money acquired through the loan, that amount would be taxable to you (depending o the entity type) but the loan itself is not taxable.
The interest paid on the loan is a deduction for the business.