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Loan to a sole trader and repayment before tax

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  • 24-10-2013 6:20pm
    #1
    Jacknory
    Registered Users Posts: 78 ✭✭


    Hi

    I started my own business just over a year ago and have been slowly finding my feet but my first tax return has thrown up a question that I need help with.

    If my spouse loans me €2000 to help get me started, can I repay her in full and deduct the amount for profitable earnings?

    Thanks

    Jack


Comments

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    #2
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    The capital amount of a loan repayment is not an allowable expense against tax.


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    #3
    Fukuyama
    Registered Users Posts: 3,023 ✭✭✭Fukuyama


    As far as I know (and I may be wrong here), you can only deduct interest paid on a loan as an expense.

    The loan from your spouse isn't an expense in the same way Light&Heat, stationary etc... are.


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