Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-06 - Franchise and Excise Tax Division
Chapter 1320-06-01 - Franchise and Excise Tax Rules and Regulations
Section 1320-06-01-.15 - INDEBTEDNESS-ADEQUACY OF CAPITAL

Universal Citation: TN Comp Rules and Regs 1320-06-01-.15

Current through September 24, 2024

The amount of indebtedness to be included pursuant to T.C.A. § 67-4-2107 shall not exceed the greater of the following amounts:

(1) Excess of indebtedness over quick assets (cash, receivables, marketable investments),

(2) Excess of book value (cost less accumulated depreciation) of capital assets (including inventories) per ending balance sheet of the return over net worth (including surplus reserves). If quick assets exceed the indebtedness to an affiliated corporation and the net worth exceeds the capital assets, the capital is adequate and no part of such indebtedness need be included.

Authority: T.C.A. §§ 67-1-102 (a), 67-1-102, 67-4-905(c), and 67-4-2107.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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