Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

investment indebtedness

Read a random definition: Mining Claim

A quick definition of investment indebtedness:

Investment indebtedness refers to the money that someone borrows to buy things that can make them money. This could be things like stocks, real estate, or a business. However, the government only allows a certain amount of the interest on this debt to be tax deductible.

A more thorough explanation:

Investment indebtedness is a type of debt that a taxpayer takes on to acquire or carry assets that may produce income. This debt is usually incurred for the purpose of making investments that will generate a return in the future.

For example, if a person takes out a loan to buy stocks or real estate, the interest on that loan may be considered investment indebtedness. The Internal Revenue Code limits the amount of deductible interest on this type of debt, which means that taxpayers may not be able to deduct all of the interest they pay on their investment loans from their taxable income.

Another example of investment indebtedness is a margin loan, which is a loan that investors take out to buy securities. The interest on a margin loan is considered investment indebtedness because it is incurred to acquire assets that may produce income.

Overall, investment indebtedness is a way for taxpayers to finance their investments and potentially earn a return on their money. However, it is important to understand the tax implications of this type of debt and to make sure that the interest payments are deductible according to the Internal Revenue Code.

investment income | investment security

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
babycat
14:41
I'm going back to my white noise 10 hours playlist to grind out this essay
Got a name change now I’m exploding Effoc
Nah honestly it hasn’t been terrible I’m just impatient
Yall are right I be tweaking
babycat
14:45
oh okay you're good g
ExplodingEffoc
14:46
Love you baby
15:06
Back off
JumpySubsequentDolphin
15:11
fight fight fight
babycat
15:15
no fighting this is a website for being silly and having fun
babycat
15:19
november score release on wednesday i need to get my apps out before then lmao
JumpySubsequentDolphin
15:28
ugh I still have four more
babycat
15:30
girl we will do this!!
grind get them out before thanksgiving
put on your sigma phonk music
JumpySubsequentDolphin
15:31
@babycat: I believe in myself bc you believe in me <3
JumpySubsequentDolphin
15:31
thank you waspy bff
u welcome dolphy bff
i believe in you too
JumpySubsequentDolphin
15:32
that means to world to me bestie
JumpySubsequentDolphin
15:32
the world* damn it
babycat
15:38
waspy when did you apply?
JumpySubsequentDolphin
15:38
I’ve been stuck behind an unmoving train for twenty minutes IM NEVER GONNA GET OUT OF HERE
i applied december
it hurts your app i think
16:51
it’s oddly quiet on the decision front today
JeremyFragrance
17:06
yak you're effoc now?
JumpySubsequentDolphin
17:09
JEREMYFRAGRANCE
How are y'all doing
babycat
17:18
scorp! how's it hanging
LSD+ is ad-free, with DMs, discounts, case briefs & more.