@Critter-3 wrote:
If you pay the interest you can deduct it however the person you pay must report it as interest earned ... so do you really want to go down that road ?
If you pick up the other thread from the user's contributions, you will see this was a loan to their business from their fiancé. The consensus was that, at least while they are unmarried, the fiancé should be reported imputed interest at the AFR. (Now, I suppose it is pretty unlikely that the IRS would ever find out and issue a penalty for failing to report imputed interest. And what one does is sometimes different than what one should do.)
