My business partnership purchased a piece of equipment on an installment plan in 2018. With the new tax law changes going into place, I know that I am allowed to write off the price of the equipment. Am I allowed to write off the complete interest too, or am I only allowed to write off the interest that was paid in each year? My installment plan is for five years.
You cannot write off all of the interest—only the amount paid each year.
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Answered by: Colleen S. Krcelich, CPA, is an adjunct professor at Northampton Community College in Bethlehem, Pa.