How do I correctly claim a Capital loan on my tax return?

alex_usa
Visitor
1 0 0

Hello All, quick question, how to properly claim "Capital" loan on tax return. I did decent research online and get so much confusing info so I cannot decide what is the best way to go about it, any suggestion is welcome please.

 

I can see few ways going about it:

 

Way 1: Claim deposit that "Capital" made the bank as Income, then claim whatever money were withheld as Expense.

 

Way 2: Claim interest paid on a loan as expense, this is easy if loan was taken and paid back on the same year since it is very clear what that interest is, but if loan was taken one year but still not paid in full, then will need to find a way to calculate how much of the interest is paid back so far which is not really straight forward to me, with regular bank loan there is an APR involved so it is always clearly visible what goes toward principal and what is the interest, but with Shopify Capital it takes fixed percentage of daily sales until load is repaid. 

 

I am a bit confused and clearly not good enough at math, can someone please push in right direction?

 

 

Replies 2 (2)

PacCloudSeafood
Shopify Partner
12 0 11

Did you ever find the answer to this? We are supposed to be able to deduct the interest paid in a given year but the remittance report does not detail the principal or the interest paid per payment

 

TurnerJoshua
Visitor
1 0 0

Hi there! My brother had a similar problem. The simplest way to claim your income tax refund is by filing a correct income tax return before the due date. While filing your return, you can check the total advance tax payments under Form 26AS. If it doesn't work, contact the lenders and notify them about the issue. Btw, I hate dealing with loans. When it comes to financing decisions, I always contact the guys from Mortgage Advisor Coventry. They help me avoid risks and hidden taxes. I hope my advice will be helpful!