Posted by The Baze on April 22, 2002 at 12:10:17:
IRC Section 267 told me what I needed to know.
John, point me in a directions please - Posted by The Baze
Posted by The Baze on April 22, 2002 at 10:34:11:
Not really real estate related, but here goes anyway. Joe Blow is the sole shareholder of ABC, Inc. & XYZ, Inc. XYZ is an accrual basis C-corp. ABC is a cash basis S-corp. XYZ owes ABC money. If XYZ owed Joe Blow money, I know that accrued interest on the loan could not be deducted until paid. But, can XYZ accrue & deduct the interest owed to ABC? Or are the related party rules and attribution rules in effect here? My hunch is that the related party rules will disallow the deduction of accrued interest until paid, but I would like your input. What about accrued interest on money XYZ owes to Joe Blows daughter? Thank you, sir.
Tom Bazley, CPA