Posted 9/29/2014 01:00 (#4098849 - in reply to #4097840) Subject: RE: Taxes have little to do with this--- this is an economics/mgt question........
E.Central MN
In some cases a bank will loan money at a lower interest rate if you have capital deposited at the bank. Yes the bank is getting a good deal by loaning you your own money. But that working capital is available if needed and interest costs are lower than if you borrowed elsewhere. Deducting interest costs is highly over-rated in my opinion.