Debt Security
Debt Security means:
security representing money borrowed that must be repaid and having a fixed amount, a specific maturity or maturities, and usually a specific rate of interest or an original purchase discount, such as a bill, bond, commercial paper, or note. An U.S. Internal Revenue Service (IRS) agent may reclassify a debt as equity, disallowing the interest expense deduction, in the case of a thin corporation. Former IRC (check if this IRC provision is current here) §385.
See also other Tax Terms and Definitions in U.S.A.
thin capitalization.
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