I received a COVID-19 EIDL in 2020 and then my business ultimately folded. I am now making the payments with personal funds. Is the interest on the payments deductible on my 1040, and if so, where can I find the place to enter the information.
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Interest paid on a personal loan is not deductible.
However, if you are in business follow the steps below.
This is how to enter it in TurboTax:
As I said in the original post, it was an EIDL for a business that ultimately folded. However, even though the loan is still in the business name (which doesn't exist anymore) and it could not be forgiven, I am still the guarantor so I am paying off the loan with personal funds. Is the interest deductible anywhere on my personal return, since I haven't had a business tax return since I went out of business?
No, the interest is no longer deductible since you don't have the business anymore. To be deductible, an expense needs to be ordinary and necessary for the production of business income. Since there is no business income being generated, the interest expense is not deductible.
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