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Loan to a sole trader and repayment before tax

Jacknory · 2013-10-24 17:20:31

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

24-10-2013 5:20pm

#1

Jacknory

Registered Users, Registered Users 2 Posts: 78 ✭✭

Join Date: December 2011

Posts: 65

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

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Comments

#2 24-10-2013 6:59pm

Peterdalkey

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Join Date: January 2012

Posts: 1977

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

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#3 24-10-2013 9:29pm

Fukuyama

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Join Date: June 2009

Posts: 2785

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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