Interiors expects that this refinancing will reduce its annual interest expense
by approximately $500,000.
1202 when investment interest expense
has been taken.
incurred by noncorporate taxpayers that is allocable to property held for investment ("investment interest expense
") is generally allowed as a deduction only to the extent of that taxpayer's net investment income.
To avoid the forfeiture of interest expense
deductions on the self-construction of a personal residence, the taxpayer should keep the time period between the purchase of the land and the beginning of construction of the residence as short as possible.
At issue in Beyer was whether interest expense
that was "clearly not allowable" under Sec.
We believe that the diversity and professional training of our members enable us to bring an important, balanced, and practical perspective to the issues raised by the proposed regulations under section 861, relating to the allocation and apportionment of interest expense
Given the significant change in interest rates in 2001, we believe the interest expense
line will have a more dramatic impact on profitability than usual," Exstein said.
Under this strategy, if Target pays interest expenses
to Holding that matches or almost matches the interest expense
paid by Holding to third parties, the operating income of Target should be effectively sheltered.
Any expenses, including statutory interest expenses
, incurred by H in making this determination--if actual, necessary and allowable under Texas law--were thus incurred in the administration of the decedent's estate.
Gross Interest Expenses
Less than Compensation Another by-product of falling interest rates over the years is a decline in the securities industry's gross interest expense
As a result, the interest expenses
of the financial services business no longer reduced the foreign source income of the manufacturing business.
2056(b)-4(a) requires the marital deduction to be reduced to the extent administrative and interest expenses
are paid out of estate income.