Deduct debt from tax returns

I personally guaranteed an unsecured line of credit for my business and the business wasn’t able to pay it. It’s about 20k. The vendor has threatened to report it on my credit as unpaid. Can

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assuming the loan was used to buy items for the business which were exspensed you have already in effect dedcuted te loan amount. so repaying the loan is not deductible. on the other hand not only will not paying the loan reflect on your credit report, you'll have forgiveness of debt income.