Tagged: Business Acquisition
We recently purchased an existing business. In doing so we took on a $200,000 loan. Is that loan a personal expense or something we can put on the books at our company?
The answer really depends on what type of business entity you are, how you’ve elected to be taxed, and how your loan was structured. If the loan was taken out in just your personal name then it becomes more difficult to classify it as a business expense. If the loan is in the business name, even though you’ve probably guaranteed it or put up personal collateral for it, then it’s a business probably a business expense. You should consult your CPA to get a definitive answer for your unique situation.