Business Loan Pay-off

I'm happy to see you here in the Community, @03.

A business loan is considered a liability, not an income. This will show up on the balance sheet report, thus not a deduction on the return. However, recording the loan in QBSE will depend on how you used it. 

To ensure that you're estimated taxes are accurate, I recommend you visit our Answerxchange site. We have our dedicated accountants and tax specialist in this forum that will give the best course of action for your business. They can also guide you on to record the pay-off correctly.

I'm including here a link of categories that you can choose in QuickBooks Self-Employed when recording transactions for reference: Schedule C Categories breakdown

I'll be right here to assist you if you have any other questions. I'll make sure you're taken care of. Have a good night!

Let me try to make this more simple:

1. 10k loan (via weekly disbursements) was listed as a liability and expensed/assets depending on spend.

2. I've been paid back from the 10k's finance charges and left-over balance of a few dollars.

3. I'll never see the 10k the VA paid WWBIC for my loan that's been forgiven.

4. What I need to know is how to clean-up the liability of 10k.

5. Since the spent expenses/assets were part of the 10k. Do I need to clean-up/reclassify those numbers?

6. Pretty much, in the end, I received 10k for nothing.