tax deduction for 30k loan
The loan itself is not tax deductible; unless you took it as part of a mortgage, anyway, it's just a regular loan.  Mortgage and Student Loan Interest deductions are special cases explicitly given tax-deductible status; other loans are not deductible (unless part of a business expense or other qualifying reason). If this were a short sale (which you note it was not but included for completeness' sake), and some of your debt was cancelled, that may have tax implications.  You cannot take a capital loss on your personal residence, so the loss itself is not deductible.
I worked in auto finance years ago, what dealers tend to do in refinance the negative value of the customer current car to the new one.  So if a car is worth 30k they may finance it for 35k. Finance company will do as not to lose the dealer and customer is happy to get a new car.  I had one customer call on a car he financed for 85k, car brand new was worth 70k. Told me how he was looking to pay out the loan and go to the competition for better rates. Before offering anything I did a quick value check and no way was it worth it for us to reduce the rates.  Told him good luck and he needed to pay X amount, he asked me if I'm not going to offer a better deal, I told him no.  He blew up telling me the dealer told him to call 6 mouths later and the financial company would reduce the rates if he asked for a payout.  Customer also had a car that dropped its value like no tomorrow, so it book value was around 60k. So over the refinance limit.  6 mouths later get a call from collection, telling me just a heads up this guy's cars was sold at the auction as he couldn't make repayments for 30k.  Guy was also told by the dealer he could just hand the car back in but wasn't told he still needed to pay back the difference in the loan once he did.  My god some people had no clue. As you own a company, you need to know what your role is. You can never just move money into or out of the company, you have to identify the role in which you are doing it, and do it properly.  There is Company, and there is You, in three different roles. You are the sole shareholder and director of Company. You are the sole employee of Company. You are also just a private person. You need to keep these three roles separate. As the sole shareholder, you own the company. However, you don't own any assets of the company. The company is yours, but the money in its bank account isn't.  As a private person, you give a loan to your company. You write on a sheet of paper that You personally, give a loan to the company, how much a loan is, what interest is paid, and when the loan will be paid back (that could be 'whenever You demands the money paid back'). Then you move the money from your private bank account to the company bank account, and the company has the money it needs to fund its operation. Assume it wasn't you who loaned the money, but I gave the loan to the company. You can imagine that I would have this loan written down and signed before I hand over the cash. And you must have exactly the same papers that I would have.  How do you get money from the company? The company can pay back your loan. That should be written down again, in the same way as the loan itself was written down. Other than that, there are three ways how you can get money out of the company: The company can pay You, in your role as its employee, a salary, which it can deduct from its profits. The company can pay money into a pension of the company director (that's You in your role as company director) up to £40,000 or so a year; that money is deducted from its profits again. The company pays 20% tax on its remaining profits. Then the company can pay You, in your role as company director, a dividend, usually twice a year. Each of these payments has to be written down and given to HMRC properly.  Best by far to use an accountant to do all the paper work for you and advice you what to do. You can lose a lot of money by just not getting the paperwork right, by filing late etc., which the accountant will get right. The accountant will also tell you what are the optimal amounts for salary and dividend (best is a small salary, about £10,000 a year, dividend of about £30,000 a year, pension as much as the company can afford, which is then all tax free to you). You can't pay more dividend then the company can afford (paying a dividend and then not being able to pay your suppliers is criminal), and if you want higher dividends, then you will have to pay taxes on them. What matters is the combination of the loan amount and the time (hours/days/whatever) you've loaned out the money.  $100 * 10 hours * 30 times = 30K dollar-hours  The other loan is $100 * 24 hours * 30 days = 72K dollar-hours  But using your math the original loan is 30X the amount of the second. Yes, if you gift him with a large amount you may be liable for gift tax. I believe the current limit is still $17k per person per person per year, so between you and your spouse you could give him up to $34k per year without triggering gift tax. If you want to give a larger sum, the standard workaround is an intra-family loan. Websearch for that phrase to learn more about it, but basically you loan the money and then gift the payments on the loan. This gives him the money up front, spreading the gift over subsequent years --but it requires that you declare the interest that he is supposedly paying you as income. There is a lower limit on the interest rate for these loans, but it's a fraction of a percent so this generally isn't a significant cost. (If you are able to structure the loan as a mortgage, he may be able to deduct the interest from his taxes. That usually requires a few hundred dollars if paperwork to set up.) I've done it. It works. And one of the advantages is that it puts the exact terms of the lian on paper where everyone can agree to them, which could be useful should there be arguments later on.  When doing business with friends and relatives, keeping it on a clear business contract basis is the best way to avoid destroying the friendship. When you pay interest on a loan used to fund a legitimate investment or business activity, that interest becomes an expense that you can deduct against related income. For example, if you borrowed $10k to buy stocks, you could deduct the interest on that $10k loan from investment gains.  In your case, you are borrowing money to invest in the stock of your company.  You would be able to deduct the interest expense against investment gain (like selling stock or receiving dividends), but not from any income from the business. (See this link for more information.) You do not have to pay taxes on the interest paid to your father; that is an expense, not income.  However, your father has to pay taxes on that interest, because that is income for him. You don't state your age, debt amount, loan rate, and amount of retirement savings. These facts impact the strategy you pursue: If your student loan interest is at low rate, it is more effective in the long run for you to prioritize 401k match contributions or Roth IRA contributions. Your student loan interest will be tax deductible. You may be able to file taxes separately as a married couple. This will keep your monthly loan payments lower than if you file jointly, allowing you to do tax-deferred savings (401k/Roth). I share the concerns about commingling your finances before marriage. You'll be married soon enough, and after that the $14k/yr gift tax concern won't even be an issue. 30 year loans usually have higher interest rates. You pay more interest over the life of the loan on a 30 year loan A 15 year loan will have higher monthly payments than a 30 year loan 30 year loans are virtually all fixed interest rate loans. 10 year loans often are variable interest rates. First, the single worst reason to do anything is because most people are doing it. The second worst thing is to take tax advice from a non-tax pro. (Ironic, I understand, but read on) Run through your 2015 tax return. Do you itemize already? If not, there's a reason, the standard deduction for a couple is $12,600 in 2016, so a renter isn't likely to have enough deductions to itemize, even with a high state tax.  For 2016, project your total interest from the mortgage, and the year's property tax, then add your state income tax, and last, any charitable donations. This total comprises the bulk of what people take on their Schedule A. Now, since your current withholding assumes the standard $12,600, subtract this number, and you're left with the amount your taxable income will be reduced for the fact that you have the house. Last, divide this number by $4000. The result is how many more withholding allowances you can claim. One personal exemption (a withholding allowance) is exactly $4050 this year.  For what its worth, median home price for early 2016 was $190K. After 20% down, a $152K mortgage would cost about $6000 in interest the first year, and maybe $3000 in property tax. The average couple, making $60,000 or so won't have a state bill much over $3000, so shy of some nice donations, it's easy to have a house, yet still not itemize.  Of course, if you have higher income and a more expensive home, the numbers will be different.  The best you can do is to get tax software or use an online service and estimate the 2016 return based on your numbers. If you wish to post numbers via an edit to your question, I'm happy to update my answer a bit to your situation.  Note - the form you'll use to adjust withholdings, the W4, offers a worksheet to perform the calculation.  It asks in line 1 for your total itemized deductions, then subtract the standard deduction, then divide by $4050. Pretty much what I suggested above.