My blog has moved! Redirecting…

You should be automatically redirected. If not, visit and update your bookmarks.

Finance For Dummies

Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.

Sunday, May 21, 2006

Using Home Equity to Finance a Small Business

Small business owner who take out a home equity loan to get cash are elligible for a tax deduction on the interest of that loan. However, if you have a pass-through entity business (LLC, LLP, S Corporation, sole proprietorship) the interest is fully deductible as a business expense. This works for the owner very well and saves more on taxes than taking the deduction on a Schedule A.

To do this you must deduct the interest on your appropriate tax schedule. Schedule C for sole proprietorships and one-member LLCs, Schedule E for partnerships, S Corporations, and multi-member LLCs and LLPs.

There are many benefits to doing this, but ask a tax planner/accountant for more information so you can successfully prepare this for your 2006 taxes.


Post a Comment

<< Home