How to avoid "double reporting" with loan proceeds and lines of credit

I'm very particular with my budget and expense tracking. But I'm not sure best practice for tracking loan proceeds and lines of credit, how the money was spent, and paying back the loans.

For example, I receive a $5,000 loan to renovate the bathroom. I spend all $5,000 on the renovation and record expenses in a "Home Maintenance" category. I pay back the $5,000 loan and record the loan payments in "Home Maintenance," because, well--the loan was for home maintenance. However, when I run year-end reports, the bathroom renovation cost is incorrectly reported as $10,000.

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