Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
tmcnab
New Member

Where can I take an interest deduction on a three year installment payment for buying out a former business partner that charged interest on the payments?

My accountant says the payments cannot come from the business and must be paid off personally.  Monthly payments are made out of our personal account.  A three year payment plan was setup with monthly interest detailed.  The payments go directly to my former business partner.

1 Best answer

Accepted Solutions
PatriciaV
Expert Alumni

Where can I take an interest deduction on a three year installment payment for buying out a former business partner that charged interest on the payments?

Yes, you may report this interest as Investment Interest Expense under Deductions & Credits, without Form 1098. 

The easiest way to find this section of TurboTax is to open your return use the Find/Search box at the top right side of the TurboTax header. Type in "investment interest expenses", hit Enter, and click on "jump to investment interest expenses" to go directly to beginning of this topic.

This is an itemized deduction, reported on Schedule A.

View solution in original post

1 Reply
PatriciaV
Expert Alumni

Where can I take an interest deduction on a three year installment payment for buying out a former business partner that charged interest on the payments?

Yes, you may report this interest as Investment Interest Expense under Deductions & Credits, without Form 1098. 

The easiest way to find this section of TurboTax is to open your return use the Find/Search box at the top right side of the TurboTax header. Type in "investment interest expenses", hit Enter, and click on "jump to investment interest expenses" to go directly to beginning of this topic.

This is an itemized deduction, reported on Schedule A.
Dynamic AdsDynamic Ads
Privacy Settings
v