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What types of debt may be tax-deductible for an individual? How may one create their own...

What types of debt may be tax-deductible for an individual? How may one create their own WACC calculation based on their personal debt?

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Answer #1

Some of examples of debt which are tax deductible for individual are house loans interest, mortgage interest for investment properties, student loan interest etc.

The WACC =(After tax cost of debt*weight of debt) since here we are considering only debt is present

We need to take amount of the loan we have for each type and do the weight of each of it. Next find the interest rate of debt for each of it and then after tax cost of debt will be cost of debt*(1-tax rate) and tax rate is based on individual rate.

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