Take out a loan from your business?

Question

Let's say I start a company. What are the tax advantages to taking out personal loan from my company (paying myself)? Buying a car and/or a house under the company name?

I don't have to pay PERSONAL income taxes on loans right?

curious...

Answer 1

No tax advantage at all. The IRS looks at that type of transaction very closely. If it looks like anything but a bona-fide loan that is being repaid with market based interest it will be determined to be income to you and taxed.

You won't be able to get a home loan under the company name unless it has a strong D&B rating; you'd have to personally guarantee it yourself.