Скачать или смотреть Tax Treatment of Corporate Financing Charges and Securities

This video explains how corporate financing charges are treated for tax purposes, focusing on the distinction between ongoing service costs and initial implementation expenses. While interest is typically deductible, initial costs like legal and accounting fees must generally be written off over a five-year period. The video further details how debt securities issued at a discount or premium alter the final after-tax cost of capital. Shallow discounts are fully deductible, whereas deep discounts only allow for a partial deduction, potentially increasing the issuer's financial burden. Conversely, premiums can provide a tax-free gain for corporations, often lowering the net cost of borrowing. Ultimately, the video highlights that both issuers and investors must analyze these tax implications to determine the true value and attractiveness of a security.