The interest payments are being reloaned back in so I haven't actually taken possession of the proceeds yet & will not until the end of the 365 cycle.
2007-01-25 18:52:48 · 3 answers · asked by brettrq 1 in Business & Finance ➔ Taxes ➔ United States
Unless you are in the loan business, you are a cash basis taxpayer.
If you have charged interest on the loan and re-loaned it during 2006, that amount of interest is taxed in 2006.
Principal that is returned to you is not taxable.
2007-01-26 00:14:17 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
No you don't pay taxes
but the accounting must show them to be in accordance with GAAP
2007-01-25 19:00:52 · answer #2 · answered by a q 2 · 0⤊ 0⤋
If you are on the accruals basis, then yes. If you are on cash basis, no.
It seems you are in a sophisticated business. your CPA (I hope you have one) is the best person to ask.
2007-01-25 22:33:35 · answer #3 · answered by skip 6 · 2⤊ 0⤋