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Hi everyone.
client received an SBA loan during COVID while working as an Uber driver. Now, he files a Schedule C for a different field—home health care services under a single-member LLC. I would like to know if I can deduct the loan interest on his Schedule C or if I should apply Revenue Ruling 67-12 on Schedule 1.
Thanks for your help!
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Any help please!
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Was the SBA loan actually used for business expenses? If so, I would put the interest on Schedule C.
If it was not used for business expenses, I don't think the interest goes anywhere.
Many of these SBA loans during Covid were just used to pay their personal expenses, in which case personal interest is not deductible.
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@TaxGuyBill Yes it has been for business, but now business in 2024 is different from business during the Covid era
