Cash Profit
“I want to take out a high-interest merchant cash advance to cover my tax bill, is the exorbitant interest fee tax deductible as a business expense?”
A merchant cash advance used to pay a tax bill raises a few tax accounting questions, especially because the label on the fee, the timing of the cash advance, and whether the obligation is tied to business operations can all affect how it is treated. In many cases, the tax treatment depends on whether the charge is viewed as interest, a financing cost, or another type of business expense, and on how the advance was used and recorded. The underlying tax bill, the business purpose, and the documentation from the lender often shape the answer. Going through your records with a CPA usually surfaces the answer in under an hour.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“How do I know how much of my money is actually mine vs the IRS's?”
“I operate on an accrual accounting basis but clients are paying me months late, can I switch to cash basis so I don't pay taxes on money I don't have?”
“I received a grant from the local government to keep my small business open, is this cash injection considered taxable income by the IRS?”
“I am consistently short on cash when quarterly taxes are due, how do I set up a separate tax savings account without co-mingling my operational funds?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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