Question

My wife operated an LLC that closed at the end of 2016. She has been paying on a loan that was used for startup expenses. can we claim that on our personal income tax

Forum|Forum|6 years ago
February 2, 2020
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ColeenD3

Unfortunately, no. This is a personal expense now that there is no longer an LLC.

M

MikeinSC

Here is a somewhat opposing viewpoint:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-to-deduct-expenses-related-to-llc-that-closed-last-year/00/43588

Personally, I would argue this is still a business loan, except the business is no longer active. If you follow the example above, this would create additional "basis" for you in the business, and be treated as additional capital loss in the year you pay the interest (not the principal).