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June 15, 2020
Question

We closed a failed business and had personal guarantees on credit cards and loans that we paid back in 2019 from our personal funds. Can we deduct?

  • June 15, 2020
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1 reply

Critter
Employee
June 15, 2020

These are now personal debts and are not deductible anywhere on the personal income tax return.

 

Now think back ... what did you take the loans out for ?  Was it to pay working costs or inventory ?  If so you got the deduction back then so you don't get it again now.  And the interest is now non deductible personal interest.