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Question

Personal Guarantor on SBA loan Business closed

Forum|Forum|3 years ago
February 15, 2023
1 reply
0 views

I was a 50% member of an LLC and was a guarantor on an SBA loan. The LLC closed in 2021 and we sold all the assets off but had a balance on the SBA loan. I now make payments to SBA monthly for the difference. Are those payments tax deductible since I had Risk and as 50% owner ship and guarantor?

Since the LLC is closed and you are no longer in business, you cannot take tax deduction for the interest paid on the loan. IRS allows a business tax deduction only for the interest portion of the loan repayments, not the amount that goes to the principal.