When a company purchases equipment by issuing a long-term note, the interest element of the payment is tax deductible. However, if the company leases equipment, the entire lease payment may be tax deductible.

Question

Quizplus · Accepted Answer

Interest on a long-term note is typically tax-deductible, and lease payments are often fully deductible as a business expense, depending on the lease type and tax regulations.

When a Company Purchases Equipment by Issuing a Long-Term Note