Left over business line interest

[rfk]

To be sure, I do not think that former, self employed, business line interest is still deductible after the business is closed. My client still has LOC payments, where interest was paid and now has a 1098 reported.

I believe that the interest deduction ended with the life of the business. Any thoughts please? He essentially closed the business, not selling it or anything about 2 years ago. It is late and maybe I am missing something?

Thanks for your help.

rfk

[erchess]

I think

that deductions can still be claimed but I'd like to hear other opinions. Bump.

[Maribeth]

The character of the debt does not change simply because the business has gone out of business. If the interest has previously been deducted on his Schedule C, then you may deduct it on that form. Sometimes we will see it on 4797 also.

Maribeth

[rfk]

So I guess a 'C'

So I guess I will put it on a 'C.' One item on the whole document. He was a physician before and closed his office.

rfk

[Burke]

You can use a C-EZ.