Interest expense


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Interest expense

Interest expense is the money the corporation or individual pays out in interest on loans.

Interest Expense

The amount that an individual or company pays in interest on the debt it borrows. For example, if one borrows $1,000 for one year at an annualized interest rate of 10%, one will ultimately repay $1,100. In this case, the interest expense is $100. In the United Kingdom, the interest expense is called the interest payable.
References in periodicals archive ?
2008-12 is whether a noncorporate limited partner's distributive share of interest expense incurred in the trade or business of trading securities by the partnership is subject to the Sec.
Allocating a domestic parent's interest expense under Treas.
Our analysis shows that Target could realize the largest savings in its annual interest expense if it refinanced its debt under our assumptions," Exstein explained, adding that the retailer could see savings of $17.
The Company has concluded that the timing difference in interest expense should be reflected in the 2005 reporting period as higher interest expense for that period, as well as for the earlier years 2003 and 2004.
Investment expense, such as brokerage management fees, is subject to 2% of the adjusted gross income (AGI) floor and is reported on the "other expenses" line (in the "Job Expenses and Certain Miscellaneous Deductions" section) of Form 1040, Schedule A, Itemized Deductions, while investment interest expense is not subject to the 2%-of-AGI floor and is reported on the "investment interest" line (in the "Interest You Paid" section) of Schedule A.
Section 864(e) of the Code provides the allocation and apportionment of interest expense to be made on the basis of assets rather than gross income.
Conversely, NOVA's coverage ratios were modestly weaker with operating EBITDA-to-gross interest expense and funds from operations interest coverage was 3.
172(b)(1)(E) applies is less than the average yearly interest expense deduction for the three tax years prior to the CERT, there is no CERT limit on the NOLs.
Despite the adoption of the concept of fungibility, the affiliated group concept that underlies the current interest expense allocation regime is based on an affiliated U.
The four transactions have reduced TVA's debt by more than $50 million and annual interest expense by more than $25 million.
But if the $50,000 is invested in growth stocks that pay only $500 in dividends, current deductions are limited to the net investment income of $500; the remaining interest expense of $4,500 must be carried forward indefinitely.
Under present accounting, the entire proceeds of issuance would be recognized as a liability, and interest expense of $1,950,000 ($50,000,000 x 7.