Discussion:Interest deduction
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Discussion Forum Index --> Tax Questions --> Interest deduction
| 11 April 2006 | |
| If an individual gives a note in exchange for the purchase of stock of s-corp and the note bears interest, can individual deduct the interest expense? | |
| 11 April 2006 | |
| sure. where depends on specific. with material participation it should be business interest. | |
| 11 April 2006 | |
| if person materially participates in business he should get interest deduction? Against ordinary income? where on 1040? | |
| 11 April 2006 | |
| My incredicbly faulty memory thinks Schedule E. There is a previous thread on this. | |
| 11 April 2006 | |
| Treasury Regulations, Subchapter A, Sec. 1.163-8T
Or in simpler terms, interest on debt used to acquire an ownership interest in a pass through entity in which you materially participate is deductible as business interest to the extent of business income. | |
| 12 April 2006 | |
| I am assuming an s-corp qualifies as a pass-through. Is it deducted on schedule A? | |
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