4.

Interest installment on bonds

Non-deductible interests

1. Interest concurred orally

2. Interest on favored stock

3. Interest on obligation that has been recommended

4. Interest cost emerging from related citizens

5. Interest cost if the obligation is brought about to fund petrol investigation

6. Premium paid ahead of time by a citizen utilizing the money premise of bookkeeping

d. Prepaid premium of a person under cash premise

I. Deductible not in the year that the interest was paid ahead of time yet in the year that the
obligation

was paid.

e. Discretionary Treatment of Interest Cost

I. At the choice of the citizen, interest brought about to secure property utilized in exchange or
business or in

exercise of a calling might be permitted as a derivation or treated as a capital use.

ii. Notwithstanding, should the citizen choose to deduct the interest installments against its net
pay, the

citizen can't simultaneously underwrite the interest installments since that would establish do

5. Duties