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JT817
Returning Member

judgement interest deduction

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

Can I also deduct paid legal judgement?

4 Replies
xmasbaby0
Level 15

judgement interest deduction

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
JT817
Returning Member

judgement interest deduction

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 .

JT817
Returning Member

judgement interest deduction

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!

ToddL99
Expert Alumni

judgement interest deduction

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

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