Discussion:Divorce Settlement-Interest Payment
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| Revision as of 01:49, 2 April 2008 Kevinh5 (Talk | contribs) (not deductible) ← Previous diff |
Current revision Taxwizard (Talk | contribs) (If the debt rela) |
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| + | {{ForumReplyPost|UserID=Taxwizard|Date=2 April 2008|Text=If the debt relates to the buy-out of the ex-wife's interest in the rental property, the interest should be deductible on Sch. E. Sec. 1041 does not apply to interest on these types of debts.}} | ||
Current revision
Discussion Forum Index --> Basic Tax Questions --> Divorce Settlement-Interest Payment
Discussion Forum Index --> Tax Questions --> Divorce Settlement-Interest Payment
Johnthecpa (talk|edits) said: | 1 April 2008 |
| My client issued a $600,000 note payable to his ex-wife in 2007 (divorced in 2007)as part of the property settlement. The note calls for interest payments at a 6% APR, with the note fully amortized over 5 years. Is the interest paid by my client to his ex-wife merely non-deductible personal interest?
Thanks, John | |
Johnthecpa (talk|edits) said: | 1 April 2008 |
| It is secured by rental property owned by my client. | |
| 2 April 2008 | |
| If the debt relates to the buy-out of the ex-wife's interest in the rental property, the interest should be deductible on Sch. E. Sec. 1041 does not apply to interest on these types of debts. | |
