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repaying a loan for a business purchase
JBSurfs
subscriber Posts: 10 Member
we are looking to purchase two existing s corp businesses. after looking at options, we have a home equity line and will use that plus either a sba loan or a loan from a family member.
my question is on how the loan gets repaid - as a business expense to the business, or after taxes as an expense to us, the employees?
So, I want to pay them off as fast as possible. Are the loan payments made as a business expense in both cases, or since we own the business, is this the same as us buying a pool, where we own it and the loan payments must come out of our paychecks?
So, if we can pay out of the business profit, before our paychecks, we'll avoid the taxes on the money, but also be able to keep our premium on our ACA insurance. if we have to send the money to us, as the employees, we'll lose roughly $15000 in insurance premium assistance, and the tax costs of the money being sent to us.
Appreciate any help.
my question is on how the loan gets repaid - as a business expense to the business, or after taxes as an expense to us, the employees?
So, I want to pay them off as fast as possible. Are the loan payments made as a business expense in both cases, or since we own the business, is this the same as us buying a pool, where we own it and the loan payments must come out of our paychecks?
So, if we can pay out of the business profit, before our paychecks, we'll avoid the taxes on the money, but also be able to keep our premium on our ACA insurance. if we have to send the money to us, as the employees, we'll lose roughly $15000 in insurance premium assistance, and the tax costs of the money being sent to us.
Appreciate any help.
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