Loan interest rate: 7% p.a
Cash bond ROI: 5% p.a
AFAIK - For the life of the bond:
1) Interest on loan is tax deductible
2) Interest on cash bond is taxible income
What happens after the duration of the cash bond?
Loan interest rate > Cash bond ROI
There would be a net loss after the cash bond term, with the net loss amount continuing to accrue interest.
Question: Will the interest on net loss after the cash bond term be tax deductible?
Cash bond ROI: 5% p.a
AFAIK - For the life of the bond:
1) Interest on loan is tax deductible
2) Interest on cash bond is taxible income
What happens after the duration of the cash bond?
Loan interest rate > Cash bond ROI
There would be a net loss after the cash bond term, with the net loss amount continuing to accrue interest.
Question: Will the interest on net loss after the cash bond term be tax deductible?