ILLMAS Posted November 30, 2015 Report Posted November 30, 2015 A friend of mine call me and I was not able to answer her question, hopefully someone can help me. She bought a business from someone else and have been making two payments to the seller, one payment is for the goodwill and the other payment is for the shares (S-corp). The seller is financing the goodwill and the shares, my friend makes payments for the goodwill from the business account and she pays for the shares + interest from her personal account. The question is can she deduct the interest paid on the financing of the shares she pays? Thanks MAS Quote
jklcpa Posted November 30, 2015 Report Posted November 30, 2015 It's investment interest expense subject to the usual limitations. 1 Quote
Lee B Posted November 30, 2015 Report Posted November 30, 2015 I would think that it would be reported on Form 4952 as Investment Interest and deductible on Schedule A subject to the normal Investment Interest limitations. Quote
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