Hi all. We are about to purchase a business, actually 2, that are S corps. we were looking at the 401k robs, and are getting scared of that. so, to fund the business, we have available, a home equity line and will either use a sba loan or a loan from a family.

my question is, since we will keep the same s corps by name, tax id, etc., where does the loan payment come in to play, before or after taxes? So, for the sba loan/family member loan, are the payments made as a business expense and thus before a w-2 paycheck to us from the business. The same question about the home equity loan we are using to purchase the business.

So, if we must pay back both loans as expenses to us, the employees, then we will end up losing a lot of money in the process between taxes on the income and adding about $15,000 we'll lose in ACA insurance premiums.

If we are able to pay back both loans or at least one loan from the business, we can use any extra profit towards the loan to keep our lower income and keep our ACA premium assistance, plus pay more back since we won't be paying uncle same taxes.