Tax Deductible Interest

Tax Deductible Interest

The interest one must pay on a loan that one may also remove from one's income for the purpose of calculating taxes. For example, if one pays $2,500 in interest on a student loan, one may be able to remove $2,500 from his/her taxable income. Mortgage interest is often tax deductible.
References in periodicals archive ?
Further, tax deductible interest payments make the Notes an attractive source of capital.
subsidiary's books would give rise to tax deductible interest payments, generally without limitation.
Acquisition indebtedness may create tax deductible interest on repair of a home destroyed by a casualty.
Trust Preferred Securities have the added benefit of a tax deductible interest coupon, making them a relatively inexpensive source of capital," added Guenzel.
It simplifies our balance sheet, replaces non-tax deductible preferred dividends with tax deductible interest expense, and increases common shareholder value as the transaction is anti-dilutive or accretive to diluted earnings per common share by over 30%.
The anticipated structure of the offering provides for conversion of the securities into the common stock of FINOVA at any time by the holders and the ability of the Company to terminate such conversion feature after three years (subject to certain conditions including attainment of a specified premium to current market price) as well as the ability of the Company to make tax deductible interest payments while the convertible TOPrS remain outstanding.