Asked by Nikita Verma on May 12, 2024
Verified
Interest on bonds is tax deductible.
Tax Deductible
Expenses or payments that can be subtracted from gross income to reduce the amount of income subject to taxation.
- Understand the tax implications of bond interest and the deductibility of interest expenses.
Verified Answer
IO
Isary OrtizMay 12, 2024
Final Answer :
True
Explanation :
The interest paid on bonds is tax deductible for the issuer of the bonds. This means that the company or entity that issued the bonds can deduct the interest paid to bondholders from their taxable income. It is important to note that the tax deductibility of bond interest applies to certain types of bonds and there may be limitations on the amount that can be deducted.
Learning Objectives
- Understand the tax implications of bond interest and the deductibility of interest expenses.