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?
Get the working capital your business needs from Entrepreneur Lending, powered by CAN Capital. Learn More »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.