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When Are Points Paid on a Loan Deductible as Interest

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When are points paid on a loan deductible as interest expense?


Definitions:

Net Income

The amount of profit a company generates after deducting all its costs, expenses, taxes, and interest from its total revenue.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Payout Ratio

A financial metric indicating the percentage of earnings paid to shareholders in the form of dividends, reflecting a company's dividend sustainability.

Dividends

Distributions from a company to its shareholders, typically sourced from the firm's earnings.

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