topic Employer is forgiving principle on hiring bonus loan 8 year ammortization (which is taxable inc). but charging interest outright. Is this interest deductible anywhere? in Get your taxes done using TurboTax

Employer is forgiving principle on hiring bonus loan 8 year ammortization (which is taxable inc). but charging interest outright. Is this interest deductible anywhere?

jeanwangard — Wed, 31 Mar 2021 19:28:53 GMT

Re: Employer is forgiving principle on hiring bonus loan 8 year ammortization (which is taxable i...

MinhT1 — Wed, 31 Mar 2021 19:52:53 GMT

Unfortunately, interest paid on this loan is not tax deductible.

Re: Employer is forgiving principle on hiring bonus loan 8 year ammortization (which is taxable i...

jeanwangard — Thu, 01 Apr 2021 04:59:40 GMT

Thank you. Thats what we thought. Some investment advisors go from employment to independent advisor business status and then I believe such interest is deductible against the business. The lack of employee deduction is so unfortunate in the tax laws. Old retention forgivable loans used to forgive the interest too making it income but I think those have challenged as not true loans. Other firms now create a bonus structure to make up for offsetting the interest payment Thx