Is required amortization tax deductible?
Is required loan amortization tax deductible? …………………………………………………………………………………………………………………………………………..
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
No, required debt payments (amortization) are not tax-deductible. You are simply returning a portion of the principal to the creditor and you recognized no taxable income upon receipt of the original funds.
Interest expense is generally tax-deductible, though there are some tax rules you need to consider, especially in LBO / highly levered situations.
Hope that helps.
Is preferred equity PIK interest tax deductible? Was having a discussion in my group whether that's interest or dividends.
yes PIK interest is non-cash and tax deductible
Thanks, am aware. Wondering about PIK interest on preferred equity specifically since it's technically a dividend and not an interest payment.
Voluptas eveniet velit atque repudiandae ut natus consequatur. Aliquid aut nesciunt laborum ipsam ut accusamus consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...