Boopos tax deductibility

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May 29, 2023

by a searcher in New York, NY, USA

Hi all,

Does anyone have experience using Boopos to fund an acquisition?

Specifically, do you have any guidance on the tax deductibility of the repayment cap (I.e., how interest is treated)? For context, Boopos does not use a "set" interest expense, but rather increases the repayment amount owed each year (payback example linked here: https://youtu.be/lNoSWZP5ZSE).

Our understanding is that the incremental amount owed would be considered the interest expense from a tax perspective, but would like to avoid any surprises. Thanks in advance for any guidance.

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