normally you can only deduct up to $2500 in interest and that’s if you make less than a certain amount. If you make the student loan a business expense you would be able to write off the entire loan and not just the interest right?

My mother is considering making a small business start up loan to me. Can she use any tax deductions for this? The loan would be $10K
Thanks!

Is interest paid on a business loan an above the line or non-miscellaneous below the line deduction? IRC 62a includes as above the line all business expenses; but IRC 67b includes interest paid as a non-miscellaneous itemized deduction.
I’m 99% sure that it’s an above the line deduction. However, are there certain situations in which you wouldn’t be able to take the immediate deduction because the loan went to purchase or improve a capital asset?

Example: If you took a loan out to purchase a new machine for your business, can you deduct the interest paid or is the interest a capital expenditure?