Article Date:
May 2017

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Buying a Business: Tax Benefits from Including Debt in Your Corporation’s Capital Structure

If you decide to use a C corporation to operate your newly acquired business, you should know that our current federal income tax system treats corporate debt more favorably than corporate equity.


So, as the owner of a closely held C corporation, you may find that including some third-party debt (owed to outside lenders) and/or some owner debt (owed to yourself) in your corporation’s capital structure is a tax-smart move. Here is the story. ... Log in to view full article.

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