Discussion:Deductibility of Interest in stock redemption

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Discussion Forum Index --> Basic Tax Questions --> Deductibility of Interest in stock redemption
Discussion Forum Index --> Tax Questions --> Deductibility of Interest in stock redemption

Ss-cpa (talk|edits) said:

31 August 2008
I have an S Corporation client that was owned 50/50 between two shareholders. The corporation redeemed one shareholder's interest in a debt financed redemption. Would the interest paid be deductible by the S Corporation?

Riley2 (talk|edits) said:

31 August 2008
Yes. See Sec. 162(k)(2)(A)(i).

Ss-cpa (talk|edits) said:

31 August 2008
Thanks!

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