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Tax deductability of interest on business loans?
Is interest paid on a business loan an above the line or non-miscellaneous below the line deduction? IRC 62a includes as above the line all business expenses; but IRC 67b includes interest paid as a non-miscellaneous itemized deduction.
I'm 99% sure that it's an above the line deduction. However, are there certain situations in which you wouldn't be able to take the immediate deduction because the loan went to purchase or improve a capital asset?
Example: If you took a loan out to purchase a new machine for your business, can you deduct the interest paid or is the interest a capital expenditure?
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Two E |
Posted on
11/29/06 Total Answers
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