kmello05
Jul 26, 2007, 03:15 PM
How does the federal income tax structure impacts a business finance decision with the use of debt vs. equity?
delite
Jul 26, 2007, 05:26 PM
How does the federal income tax structure impacts a business finance decision with the use of debt vs. equity?
Interest on debt is deductible. If debt to capital ratio is considered to high by irs guidleines, usually more than 3:1, then debt is converted to capital and no deduction for interest is allowed.