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    tweetysgirl2's Avatar
    tweetysgirl2 Posts: 1, Reputation: 1
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    #1

    Sep 3, 2007, 09:20 AM
    Federal tax structure
    How does the federal income tax structure impact a business decision to finance with use of debt vs. equity?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 4, 2007, 09:29 AM
    Generally, the HIGHER the tax liability of the business, the more advantageous the useof debt to finance the business, as interest on such debt is FULLY deductible.
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