I live in NY. Had payday loans for several years.
Date: Sat, 05/14/2011 - 19:21
I live in NY. Had payday loans for several years. I had enough and stopped paying them several years ago. Since NY has usury interest cap, what are your feelings on writing off the excess interest as a casualty loss on taxes? Acording to IRS, if the loss is due to fraud as defined by your state, it is a loss. According to NYS, violating usury cap is fraud?? Thanks!
Payday loans are ILLEGAL in the state of new york. You only owe
Payday loans are ILLEGAL in the state of new york. You only owe the principal, so the usury cap is irrelevant.
The interst was paid to the "lenders" for years, so the money is
The interst was paid to the "lenders" for years, so the money is gone. Do you think my interpretation of the NY usury law would hold water if I wrote off the "interest" as a casualty loss on my tax return?