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Interest on HELOC used solely for S-Corp

Forum|Forum|1 year ago
March 22, 2025
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I have a HELOC and the funds are used SOLELY for my S-Corp. It is not used for any personal or home improvement purposes. The HELOC is in my personal name. My S-Corp is not a real estate rental.

Can I deduct the interest on my S-Corp taxes? If not, can I deduct it on my personal taxes? Where? Any input or advice? TIA!

Best answer by AmeliesUncle

The deduction will be on your personal tax return. I am uncertain of exactly where TurboTax asks it, but it should be in the section when you are entering the K-1. There should be a question or a checkbox that asks about "Debt-Financed Acquisition", and that is where you enter the interest.

A

AmeliesUncle

How did it go from you to the corporation?

Did you loan the money to the corporation?
Did you contribute the money to the corporation?
Did you use the money to buy stock of the corporation?

J

juggy_jagadishAuthor

It is shown as a Capital Contribution in the S-Corp books.

A

AmeliesUncleAnswer

The deduction will be on your personal tax return. I am uncertain of exactly where TurboTax asks it, but it should be in the section when you are entering the K-1. There should be a question or a checkbox that asks about "Debt-Financed Acquisition", and that is where you enter the interest.