Investopedia

Continue to Site »

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.

Articles Of Interest

  1.

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.

  2. Is That Airline Ready For Lift-Off?

    Break through the clouds to see if these stocks will rocket higher, or crash and burn.

  3. I've come into a large amount of money. Should I invest it or pay off my mortgage?

    There is no simple answer to this question as it depends on a number of key factors, namely the aspects or criteria of your mortgage and investments. By illustrating these factors you'll be better ...

  4. Small Business Financing: Debt Or Equity?

    There are two sources of financing for small businesses: debt and equity financing. This article explains both.

  5. 7 Ways To Expand Your Home-Based Business

    These tips can help you take your small business to the next level.

  6. 6 Tips For Getting A Small Business Loan In 2011

    Learn the top ways to ensure that your small-business loan application is accepted this year.

  7. The Small Business Jobs Act: Make It Work For You

    Understanding how to manage business credit is the key to obtaining small business loans.

  8. The Who, What And How Of Microfinance

    Microfinancing allows people in poverty to safely take on reasonable small business loans in an ethical manner.

  9. 6 Reasons To Be Excited About The Small Business Jobs Act

    If you own your own company, these changes could make your life a lot easier, and your business a lot richer.

  10. Is Buying A Franchise Wise?

    If you like being your own boss, this is not the job for you.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Credit & Loans [1] => What's New [2] => Small Business [3] => Personal Finance [4] => SEG (Business Owners) [5] => SEG (Business Owners:Loan-Business) ) time:8ms