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Hi from Just Answer. I'm PDtax, and will assist.
You can deduct the payments from a loan guarantee for a business loan. There are two types of these deductions, business and nonbusiness bad debts.
If you can provide some background, I can advise which treatment you likely qualify for.
You likely qualify for a business bad debt, which is an ordinary loss on Form 1040. Deduct your payments on 1040, line 36, Other deductions.
You might want to include an explanation of the guarantee to support the deduction. Up to you.
Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.