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No, it is neither an expense to you or income to the recepient.

Loans are investments, even in a personal sense, a balance sheet, not income statement item. The (presumably cash/money) asset is offset by having an asset of another type....normally a receivable or investment ...it just isn't cash. (The borrower receives cash asset and has a corresponding liability of the payable).

The income, presumably interest, on the loan is income. If the loan/investment isn't paid, and meets the qualifications for being a bad debt, the amount not repaid is an expense.

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17y ago

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