Dr. Friday explains changes affecting large businesses with significant debt—especially industries hit by today’s higher interest rates.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Interest deduction on business debts of larger companies is tweaked a little bit. After 2024, adjusted taxable income is figured without regard to the deduction of depletion, depreciation, and amortization, thus allowing higher interest deductions.
So it’s just giving us a way—because for a long time we weren’t able to take all of the interest in that year, especially if you buy a hotel or something. You’ve got some pretty high interest rates right now at nine and ten percent.
So if you have that in your business, there are ways. Laws are changing—you need to make sure you’re taking advantage of them.
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