Page 124 - Large Business IRS Training Guides

Business Interest Income

• Business interest income (BII) is the amount of

interest includible in the taxpayer’s gross

income for the tax year which is properly

allocable to a trade or business.

• BII does not include:

• Investment interest (IRC § 163(d)), or

• Interest income that is allocable to an

excepted trade or business.

(Certain regulated utilities, electing real

property and farming businesses, etc.)

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