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 ?
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%.