The Deduction for Business Interest Expense Is Limited to the Sum

question 41

True/False

The deduction for business interest expense is limited to the sum of (1)business interest income and (2)30 percent of the adjusted taxable income of the taxpayer for the taxable year.

---

Definitions:

Ratio

A link between two digits signifying the frequency with which the first digit embodies the second.

Equivalent Ratio

A proportion that demonstrates the equality between two ratios or fractions.

Ratio

A mathematical ratio defining how often one number is included in or includes another.

Unknown Quantity

A variable or value within a mathematical problem or equation that has not yet been determined or identified.