Business property is in the name of the SMLLC owner. Owner takes out loan secured by business property
Edited: For some reason, my entire question was not posted. Here is more information: The business property is in the individual's name. The loan was also in the individual's name but the proceeds were used exclusively for business operations & the owner received a 1098 reporting the interest.
"for business operations"
Does not give anyone enough info to provide an answer.
For instance: Bought Supplies used on the job. Paid other debt. Paid payroll and owner draws. Paid payroll taxes. Bought a vehicle.
This is a discussion. You need to participate, if you would like help from peers. Details always matter.
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Thanks again! There is no easy way to tell specifically what the loan was used for. According to the owner, the loan was used to "run" the company. Bookkeeping prior to 2020 was sketchy. Because of the amount of the loan compared to total expenses, and the existence of other debt, the loan was probably used for all of the above, except payroll. There is no payroll.
The business property is a separate location from home.
I think 1098 was issued because the property securing the loan is individually owned and the loan was also in the name of the individual.