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I sold my business in May 2010. Originally I had a loan to

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purchase the business. Sale proceeds...
I sold my business in May 2010. Originally I had a loan to purchase the business. Sale proceeds went to pay off another loan I had still leaving the business loan active.

Can I still claim a deduction for the loan interest paid after my business was sold?
Submitted: 6 years ago.Category: Tax
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Answered in 8 hours by:
9/2/2011
Tax Professional: Jax Tax, Tax Attorney replied 6 years ago
Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1,408
Experience: JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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Jax Tax : Yes, if a partnership or sub S, list as unreimbursed partner expense on sch E. If a sole prop, sch C, if a c corporation you are out of luck.
JACUSTOMER-nfait5ap- :

Have no idea what schedules you are referring to. I don't think we have these in New Zealand

Jax Tax : I am sorry. I thought this was a US tax question. I will recategorize it.
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Tax Professional: Tax.appeal.168, Tax Accountant replied 6 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.

Interest paid on loans taken out by businesses is a deductible expense from your final profit or loss figure when your tax bill is calculated. The loan interest can only be deducted from profits if the loan is exclusively for a business purpose or a property letting if it is part of your business premises.

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My interpretation of the above is in order to deduct the interest, you have to still own the business.

You can refer to the following for more detail:

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791587&type=RESOURCES
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