Why is interest expense disallowed if it is incurred to purchase or hold tax-exempt obligations?

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Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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Question Posted: Dec 11, 2015 01:57 AM

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Why is interest expense disallowed if it is incurred to purchase or hold tax-exempt obligations?

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The interest is disallowed as a deduction because the taxpayer would realize a double tax bene...View the full answer

Federal Taxation 2016 Comprehensive

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