SBA Loans have helped a lot of businesses, especially in the last couple of years. While funding can help any business, after getting an SBA loan there are a lot of questions. This article will be focusing on the question, are SBA loan payments taxable?
The answer is not so simple, While your payments paying back the loan are not eligible for a write off the interest and any fees associated with the SBA loan are. The subsidy received for the SBA loan is not taxable income, so no need to report is as such on your taxes. However any fees or interest paid to a lender or the SBA is an expense and is eligible to be reported as such.
Are Business Loan Payments Tax Detectable?
Many Business loans have the benefit of being able to write off the interest and fees associated with the loan because it is a business expense. If you borrow $10,000 with a 5% interest rate Your payback would be $10,500, $500 of which would be eligible for a write off because it was a cost associated with the loan.
Hopefully this article helped you figure out your tax responsibility with a SBA loan and cleared up any confusion. Don't have a SBA loan but are Looking to get one? Trust Capital Funding is an SBA approved lender and we have multiple SBA programs available. Contact us or Apply Now and one of our representatives will go over your options and answer any questions you may have.