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Yes, the amount that you are describing would be interest expense and would be a tax deduction for you.
So, this amount is a tax deduction.
Do you have any further questions?
Super, just one more thing. When I draw up this stock agreement I will be spelling out that the stock is collateral for the loan but do I have to spell out that the difference between the selling price of the stock and the buy back is the interest? If the agreement just stated the selling price and the buy back price wouldn't the difference be automatically a tax deduction because the company buy back was higher than the sale price?
Yes, that is correct