can anyone tell me if the interest paid on a judgement is tax deductible?

Answer 1

I do not believe that it is. If you are talking federal income tax returns, the only tax that's deductible is state income tax and any type of governmental tax, such as real estate property tax, city and county taxes, and personal property tax (such as registration fees paid to the dept of motor vehicles).

However, it's worth a call to someone to make sure! You can probably call the IRS's 800-number for taxpayer questions. (Might be better to do that than rely on the answers here!)

Good luck!

~ ♥ ~

Answer 2

I agree with Mathew, you need to specify the Judgment and re-post the question.
By the way, if you do call the IRS, talk to more than one representative. Most likely you will get more than one answer. Tell them to refer you to the publication they are basing their answer on, and then look it up to confirm before making any tax decisions.

Answer 3

Not sure about the interest, but if you incurred any legal expenditures that were court ordered you might be able to deduct them.

Answer 4

It depends on what the judgment is for as to the judgment it's self being taxable but any interest on that money would surely be taxable.