Solved
money lending company, where do you report loans given out?
I have a client that has a money lending company. he lent out $920,000. He received $40,000 in interest in 2022. He is filing a schedule C. where do you put the $920,000? Thank you!
This topic has been closed for replies.
His money loaned to others is the same as money still in a bank = asset. Think of it as, "Money in other people's pocket." You don't report money in the bank; you report earnings on that money. The same is true for how this asset is in other people's hands. It isn't reported when paid out (lent) or when paid back. The opposite is true; borrowed money isn't the taxable event and payback isn't reported, either. It's the cost of the borrowing that would be reported for tax purposes.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
