It is a deductible expense that can be included in your loan interest expense. You can create a sub-account to loan interest if you want to track it separately, or you can just expense it to loan interest.

tmarkjAuthor

Thanks, yes to the loan interest account, but what would be the offsetting account? Debit/Credit

Regina_Lend_A_Hand_Accounting

Level 2

That depends on what bank the fee was paid with. If the fee was paid via a connected business checking account, then the expense will come through the bank feed and you can simply expense the charge when it comes through. If your loan payments are not coming out of a connected bank account, but rather a personal account that is not connected, then this expense would be a draw against Equity and a journal entry would need to be made.

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