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Level 1
posted Jan 25, 2024 10:21:36 AM

File of a Final Business Return with an EIDL SBA loan?

I sold my business and dissolved my CA-based LLC. I would like file my final tax return but still have a 30 year term EIDL SBA loan that I could not pay off. It is collaterized (against business assets i sold and do not own) but without personal guarantee attached to it. I'm continuing making my monthly payment of $791($249k balance) with my personal funds.  My tax guy says i need to pay it all off before i can file final return.......30 more years of reutnes for a business i no longer have??  what options do have on K1(?), etc?

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1 Replies
Expert Alumni
Jan 25, 2024 6:48:37 PM

If you sold the business then you are no longer in business so I don't see why you would have to continue to file a business tax return. You can't deduct the loan interest if you aren't using the loan proceeds to operate a business. I think you need more guidance from your tax accountant on the adverse consequences of filing a final tax return and then do your own research on it.