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

[drleggett]

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?

[ThomasM125]

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.