topic Re: judgement interest deduction in Get your taxes done using TurboTax

judgement interest deduction

JT817 — Sat, 15 May 2021 02:25:09 GMT

Where can I put in deductions for paid interest on court ordered judgement?

Can I also deduct paid legal judgement?

Re: judgement interest deduction

xmasbaby0 — Sat, 15 May 2021 03:37:03 GMT

No. The interest you paid is not deductible nor is the amount for a judgment against you,

Re: judgement interest deduction

JT817 — Sat, 15 May 2021 06:25:26 GMT

" Interest that accrues after a judgment has been entered would therefore be deductible under this section, provided no specific exception to that deductibility applies. ... Taxpayer would thus not be entitled to deduct prejudgment interest under section 163; however, we must also consider whether section 162 is available.

Memorandum - Internal Revenue Service"

and Based on IRS publication 529, it may be entered as Misc deduction, just don't know where to enter in Turbo Tax .

Re: judgement interest deduction

JT817 — Sat, 15 May 2021 18:20:57 GMT

I have Turbotax premier and don't see place I can put in deduction for judgement interest. does anyone know whether Turbo tax Home $ Business has the function to do it?

Thanks!

Re: judgement interest deduction

ToddL99 — Sun, 16 May 2021 00:31:11 GMT

Was the judgement against you for product liability claims? Unless it was, then the post-judgement interest is not deductible (see @xmasbaby0 post above).

The reference you quoted above only applies to Specified Liability Losses: Product Liability--Interest Payments.

@JT817