Left over business line interest

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  • rfk
    Senior Member
    • Dec 2005
    • 217

    #1

    Left over business line interest

    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
    Senior Member
    • Jan 2007
    • 3513

    #2
    I think

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

    Comment

    • Maribeth
      Senior Member
      • Oct 2006
      • 425

      #3
      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

      Comment

      • rfk
        Senior Member
        • Dec 2005
        • 217

        #4
        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

        Comment

        • Burke
          Senior Member
          • Jan 2008
          • 7068

          #5
          You can use a C-EZ.

          Comment

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