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Updated over 4 years ago on . Most recent reply

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Richard Zhang
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Tax treatment for lending to my LLC to purchase a rental

Richard Zhang
Posted

I took a personal loan of $100K at 5% and lend it for my LLC to purchase a rental. I plan to charge my LLC 6% interest rate.

1. Is there any benefit to write up the loan as a mortgage vs a regular business loan?

2. When I received $6k interest income from my LLC, how do I report it on my personal tax return so I can deduct $5k as interest expense?

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