Question by Independent_guy: Basic accounting question – is a loan shown as income during the year the company (Inc.) receives the money?
Hi All, seek approved
When a company (corporation) gets a $ 100, approved 000 loan, is the loan shown as a loan or INCOME in the company’s tax return/tax filing?
THANKS.
Best answer:
Answer by pbroni
No, loan proceeds are not treated as income, and they do not flow through the income statement.
Only if the loan is forgiven by the lender might the loan amount need to be recorded as income.
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