Business Interest Expense

Filed Under » ,
Dictionary Says

Definition of 'Business Interest Expense'

The cost of interest that is charged on business loans used to operate the business. Business interest is deductible as an ordinary business expense. The loan must be used to either purchase assets for the business or pay for business expenses. If any amount of the loan is used for nonbusiness purposes, then the amount of deductible interest from the loan must be reduced proportionately.
Investopedia Says

Investopedia explains 'Business Interest Expense'

Business expenses must be deducted on the proper tax form that correlates to the business for which the expenditure was made. Taxpayers who incur corporate business expenses cannot deduct this expense on their personal returns. The business must reimburse the taxpayer and then deduct the reimbursement on the corporate return.
Search results for

'Business Interest Expense'

  • What do people mean when they say debt is a relatively cheaper ...

    http://www.investopedia.com/ask/answers/05/debtcheaperthanequity.asp
    ... Suppose your business earns $20,000 profits during the next year. If you took the
    bank loan, your interest expense (cost of debt financing) would be $4,000 ...

  • Starting A Small Business: Financing Your Business | Investopedia

    http://www.investopedia.com/university/small-business/financing-your-business.asp
    ... pay for startup costs. You won't incur any interest expense when you use
    your own money to finance your business. You also won't ...

  • CFA Level 1 Study Guide - Liabilities - Total Interest Cost ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/total-interest-cost-componenets.asp
    ... the EPS of a Company; 13.8 Life Cycle Analysis: The Business Cycle; ... 14.8 Institutional
    Investors and Financing Purchases; 14.9 Interest Rate Risk; 14.10 Call and ...

  • Four Companies Buying Its Own Debt

    http://stocks.investopedia.com/stock-analysis/2009/Four-Companies-Buying-Its-Own-Debt-XLNX-CIT-AMKR-AN0218.aspx
    ... panic in the credit markets to buy back its debt at deep discounts to par value,
    allowing the companies to deleverage, and reduce interest expense and make it ...

  • Making Sense Of Generac's IPO

    http://stocks.investopedia.com/stock-analysis/2010/Making-Sense-Of-Generacs-IPO-BGG-CAT-CMI-HMC0302.aspx
    ... 15.9%. Add in the interest expense and there goes the profits. ... Fundamentally,
    there's nothing wrong with Generac's business. Unfortunately ...

  • Series 65 Study Guide - Basic Economic Concepts - Interest Rates ...

    http://www.investopedia.com/exam-guide/series-65/economic-concepts/interest-rates.asp
    ... 15.4 Economic Growth Factors; 15.5 The Effect of the Business Cycle on Stock ... perspective,
    company earnings may rise because of lower interest expense, which may ...

  • Gaylord Entertainment Is Looking Very Hospitable

    http://stocks.investopedia.com/stock-analysis/2011/Gaylord-Entertainments-Looking-Very-Hospitable-GETHHOTMARWYN0913.aspx
    ... was $1.2 billion with interest expense (annualized) of ... Again, assuming similar interest
    rates, its borrowing ... one that understands your business, you should ...

  • 4 Leverage Ratios Used In Evaluating Energy Firms

    http://www.investopedia.com/articles/fundamental-analysis/12/4-Leverage-Ratios-Used-In-Evaluating_Energy_Firms.asp
    ... Since it is important to know how well a business is managing its debt, the following
    leverage ratios are used: Debt/EBITDA, EBIT/Interest Expense, Debt/Cap ...

  • Style Matters In Financial Modeling

    http://www.investopedia.com/articles/financialcareers/07/financial_modeling.asp
    ... If business is improving rapidly, reflected by the revenue growth ... For an industrial
    company, non-operating expenses are primarily interest expense and income ...

  • Rocky Brands: Not So Rocky Anymore!

    http://stocks.investopedia.com/stock-analysis/2011/Rocky-Brands-Not-So-Rocky-Anymore-RCKY-TBL-WWW-BOOT-WEYS-PNC-VFC0630.aspx
    ... revenues declining by 6.7% year-over-year to $52.3 million, the business it did ... a
    company that's been plagued by high debt and the interest expense that goes ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links