Question added to topic Money •
October 6, 2007
I bought out my partner with "owner financing." Is the interest I am paying on the loan deductable?
I own an S corporation and recently bought out my business partner. The payment was in the form of owner financing. I pay a capital payment each month and then interest on the outstanding balance at the end of the year. Can I claim the interest as a business expense/tax deduction?
Yes, if you are paying interest as it relates to business, they should provide you with a 1099 Int. and it is a deductible business expense.
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.
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