Judgment & yearly interest accrued

[EllieG20]

I have a judgment for a company that did not pay their invoice from 2019. Every year we add a 5% interest (per court order) to that judgment. I have already added the income as a loss for last year's taxes. Do I add the 5% accrued interest yearly as a business loss?

[MinhT1]

If you are on a cash basis, you should not have deducted the loss for non-payment in 2019, just as you do not deduct the interest not paid to you in 2020.

In fact, as the client did not pay, you did not report the income and should not deduct the loss.

[jsbro33]

What about interest paid by me on a $6k judgment?