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> One big issue is debt payments are counted as an expense The interest portion only, not principal. This deduction was also limited substantially in the recen
by Areading314 8y ago
> One big issue is debt payments are counted as an expense
The interest portion only, not principal. This deduction was also limited substantially in the recent tax reform. See:
https://rsmus.com/what-we-do/services/tax/lead-tax/broad-new-limitation-on-business-interest-deductions.html https://rsmus.com/what-we-do/services/tax/lead-tax/broad-new...
- mathattack 8y agoYes - just the interest, and they can perpetually roll the principal. So the cost of debt becomes tax deductible versus dividends.