Tax Considerations for Co-Obligor / Guarantor Strategies

Many companies have experienced an issue of having interest expense at a single entity (typically the parent of an affiliated group of entities), requiring a strategy to allocate the interest expense currently on the books of the parent entity to all of the operating subsidiaries whose assets and income truly support the underlying debt. The following are some federal and state income tax considerations as part of such a strategy.

ABOUT THE AUTHORS

Matt Gentile
Director, DHG Tax
matt.gentile@dhg.com

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