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    LuxDelux's Avatar
    LuxDelux Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 2, 2007, 04:30 PM
    Debt vs. Equity financing?
    Explain how the federal income tax structure impacts a business decision to finance with use of debt vs. equity. :p
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 3, 2007, 01:02 AM
    Using debt has a favorable tax impact because the interest of such debt is tax deductible. Use of equity is NOT tax deductble.
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