1. I settled with a collection agency that is collecting my student loans now. The settlement / collection fee (not the principal that I am paying) is $10,000 (in addition to the principal amount of the loan). Can I deduct this $10,000 an expense? If not, can I add this amount to the principal loan ($150,000) and deduct as interest?
2. I also settled with IRS to pay taxes for 2015. Can I deduct this amount, interest, and penalty in 2016 on my tax returns?
Thank you
