My company, which specializes in photography, is registered as an LLC. After some internet study, it appears that business loans are typically not regarded as taxable income. Could I write off $10,000 in purchases of new photography gear as business costs to lower my taxable income by $10,000 if I were to obtain a $10,000 small business loan?
Howdy,although the interest on the loan can be a valuable tax deduction, it’s important to weigh the costs and benefits of borrowing against the potential tax savings.
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Whether you purchased the equipment with cash or with a loan, you would still be able to deduct or depreciate it in the same manner. Indeed. The source of money is irrelevant. However, nothing that would not be deductible in the absence of an LLC or a company loan is made deductible.