Brokerage, lending & investing

Books and taxes for private money lenders.

A monthly payment from a flipper that is part interest and part principal, points collected at funding, a deed of trust recorded on a new loan, and a borrower who went thirty days late. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
JuneExample month
$9,200
what you made

June brought in $9,200. Of the Sanchez loan's payment, $2,100 was interest and the rest was principal coming back to you, so only the interest counts toward what you owe.

  • Sanchez loan paymentInterest income
  • Sanchez loan paymentPrincipal repayment
  • Points, new loan fundedPoints and origination income
  • Title company, new loanLoan closing costs
  • Attorney, deed of trustLegal and recording fees
Money in$18,400
Money out$9,200
Set aside for taxes$1,900
An example month. Yours will have your numbers.

Why your books are different

Private lending books go wrong at the line between interest and principal.

A borrower's monthly check is one deposit, but it carries two very different things inside it: interest you earned and principal that was always yours. When the books cannot tell them apart, your real income and your loan balances both come out wrong.

  1. 1

    A borrower's payment gets booked as all income

    A monthly payment from a flipper or investor includes both interest and a return of the principal you lent, and if the whole payment is booked as income, you look like you earned far more than you actually did, and you lose track of the loan balance.

    What we doSplits every payment into interest income and principal repayment, so only the interest counts as taxable income and the loan balance stays accurate.
  2. 2

    Points collected at funding get spread out instead of counted when earned

    Points charged when a loan funds are income you earned upfront, and treating them as a small ongoing trickle instead of income received at closing muddies both your cash position and what you actually owe that year.

    What we doBooks points as income when the loan funds, tracked apart from the interest that accrues over the life of the loan.
  3. 3

    A defaulted loan looks like a normal missed payment

    When a borrower stops paying, the loan does not just vanish from the books, and legal costs to pursue foreclosure or a deed in lieu are real costs tied to that specific loan, not general overhead.

    What we doFlags a loan in default and keeps any legal or foreclosure costs tied to it, so a bad loan's real cost is visible instead of buried in overhead.
  4. 4

    Lending your own capital gets mixed with your personal accounts

    Many private lenders fund loans from personal savings or a retirement account, and if loan payments and outgoing funding land in a personal account with everything else, it becomes hard to see what the lending business actually returned.

    What we doKeeps lending activity in its own set of books even when the capital originally came from personal funds, so the lending business's real return is clear.

Your categories

The categories Gus keeps for a private money lender.

Set up once for how a loan actually pays you back. You never pick a category. He does, and an accountant checks it.

Money in

  • Interest incomeThe interest portion of every borrower payment, the actual taxable income.
  • Principal repaymentThe return of capital you originally lent, kept apart from interest.
  • Points and origination incomeFees collected when a loan funds.
  • Late fees collectedFees charged when a borrower's payment is late.

Money out

  • Loan closing costsTitle and escrow costs paid to fund a new loan.
  • Legal and recording feesAttorney and county fees to record a deed of trust or promissory note.
  • Foreclosure and default costsLegal and administrative costs tied to a loan in default.
  • Loan servicing costsFees paid to a third party to collect payments and track balances.
  • Insurance and appraisal costsCosts to verify and protect the collateral on a loan.

What we watch for you

  • Interest collected

    The actual return on your lending, separate from principal simply coming back.

  • Outstanding loan balances

    How much capital is currently out on loans, so it is never mistaken for spendable cash.

  • Loans in default

    Which loans have stopped paying and what costs are tied to pursuing them.

  • The set-aside

    What you will owe on interest and points earned, tracked every month.

Ask Gus

Things private money lenders ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

The Sanchez payment was $3,400. Is all of that taxable to me?

No. About $2,100 of it was interest, which counts as income. The rest was principal coming back to you, which is not taxable, since it was always your money.

I charged two points when I funded a new loan this month. When does that count as income?

I booked it as income the day the loan funded, since that is when you actually earned it, kept apart from the interest that will accrue over the loan's life.

A borrower stopped paying and I am starting foreclosure. How does that affect my books?

I flagged that loan as in default and I am tracking any legal costs against it, so you can see exactly what pursuing it is costing, separate from your other loans.

The tax side

The tax side of private lending.

Most of what matters here is that only interest is income, and that points earned at funding count the year they are received.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Interest income, not principalOnly the interest portion of a borrower's payment is taxable income. Principal repayment is a return of your own capital and is not taxed again.
  • Points and fees earned at fundingPoints charged when a loan funds are usually income in the year received, separate from interest that accrues over the loan's term.
  • Quarterly estimated paymentsWith interest income and points landing unevenly as loans fund and pay off, estimated payments due April 15, June 15, September 15, and January 15 need a real look at what is expected.
  • State usury lawsInterest rate limits on private loans vary widely by state and can affect what you can legally charge. This is something to confirm with the accountant or an attorney for your state.

Deductions private money lenders miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Loan closing and title costs
  • Attorney fees for deeds of trust and notes
  • County recording fees
  • Loan servicing fees
  • Appraisal and collateral verification costs
  • Foreclosure and default legal costs
  • Software for tracking loans and payments
  • Travel to inspect collateral properties
  • Accounting and tax preparation costs
  • Errors and omissions or lender liability insurance
  • Bank and wire transfer fees
  • Home office for managing loans

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A private lender's year, kept every month.

Loans fund, pay interest, and pay off on their own schedule. Your team keeps you ahead of what each one means for taxes. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, and a monthly set-aside is planned around interest and points expected from active loans.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where you stand, what you will owe, and whether any loans paid off early or went into default this year.

  4. October

    Before winter slows flippers down

    Fewer flips list and sell over winter, which can mean fewer new loans to fund. Gus looks at which active loans are expected to pay off before December and what is worth doing while there is still time.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for private money lenders. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions private money lenders ask first.

How does Gus know how much of a payment is interest versus principal?

He works from your loan terms and payment history to split each payment, so only the interest portion counts as income and the loan balance stays accurate.

I lend money from my retirement account sometimes. Does that change how Gus tracks it?

Lending through a retirement account often has its own rules that differ from lending personal cash. Flag which loans use which funds, and the accountant confirms the right treatment for each.

A borrower is thirty days late. Does that change anything on my books right now?

Not yet. Gus starts tracking it more closely once a loan is genuinely in default, with any legal costs tied to that specific loan so you can see what pursuing it is costing.

I fund loans to a handful of flippers I know personally. Do I need a business entity for this?

That depends on your volume and how you want to structure it. The accountant looks at your situation and advises what makes sense.

I collected two points on a loan that funded but has not made a payment yet. Is that already taxable?

Usually, yes. Points are typically income in the year the loan funds, separate from interest that has not accrued yet.

My lending records are just a notebook of dates and amounts right now. Can Gus work with that?

Yes. Send whatever records you have, along with your bank statements. Gus sorts each loan's payments into interest and principal, and most lenders know where they stand within a couple of weeks.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

More in brokerage, lending & investing

We keep books for the business next door too.

What makes a bookkeeper worth paying for Every business we keep books for

Book a call

Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever