Assertion: debt instrument's interest | /r/HasProperty | tax-deductible
Facets:
value: in some jurisdictions
type: LOCATION
value: on the federal and state level
type: LOCATION
value: next
type: DEGREE
value: from taxable income
type: OTHER
value: usually
type: DEGREE
value: during the issuer's tax year
type: TEMPORAL
value: for each day
type: TEMPORAL
value: by the issuer
type: OTHER
value: in most cases
type: TEMPORAL
value: from state income tax
type: OTHER
Source sentences:
text: Since the interest on the debt is tax-deductible in most cases, the interest expense is calculated on an after-tax basis to make it more comparable to the cost of equity as earnings on stocks are taxed.
text: The interest on U.S. Treasury bonds, bills and notes is exempt from state income tax but is taxable on your federal income tax return.
text: Specifically, the CPDI regulations provide the that the interest on the comparable noncontingent bond is "deductible by the issuer for each day during the issuer's tax year on which the issuer was primarily liable on the debt instrument" and make no mention of a limitation imposed by the HYDO
text: Even though it is not always clear whether an instrument qualifies as debt or equity, this distinction is essential for tax purposes because different taxation schemes may be applied.3 Interest can usually be deducted from taxable income, whereas dividends do not reduce taxable income.
text: Next, the interest you pay is tax deductible.
text: In some jurisdictions, interest earned on local or municipal bonds is tax-exempt income, which can be an important consideration for the wealthy.
text: Interest from preferred debt is tax-deductible.
text: One other consideration: interest is tax-deductible, dividends are not.
text: Borrowers prefer mezzanine debt because the interest is tax-deductible.
text: Interest earned on most municipal bonds are tax exempt on the federal and state level.
text: Plus, in most jurisdictions the accruing interest is tax deductible, providing the borrower with a substantial tax shield.