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If you are running the business through a trust or company, and assuming it is for 100% business use, then the technically correct way to handle a loan held personally is to show the interest expense in your personal return as a deduction, with the same interest as income personally. The trust/company then deducts the interest. So the net effect is the business gets the ultimate tax deduction.

My experience is that because the end result would be the same, it would be quite acceptable to just claim the interest in the business for the personal loan (assuming the loan was used 100% for business use).

I would make sure it can be easily identified that the loan did go directly to paying for business related items. Putting personal items though the same loan can make things very difficult, and should be avoided where ever possible.

We are doing the same thing, and look at getting a personal loan to get our business up and running rather then one direct though the trust. Its just to complicated, and we have plenty of income from our day jobs to fund the loan no problems.