GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Business Interest Expense


Synonyms:deductible expense, operating cost, percentage, write off
Filed Under: financial-banking, taxation
Tags: banking, taxes
 

Definition of business interest expense

business interest expense
1. Interest incurred in the operation of your business. It is deductible as a business expense.

Related Terms and Acronyms:

  • commercial loan   A loan taken out by a business.
  • cost of goods sold (COGS)   An expense that appears on a business's income statement and represents the inventory cost of the goods sold during a particular period.
  • expensing   Government tax law allows individuals to expense certain business activities.
  • meals and entertainment (M&E)   Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
  • operational expenses (OpEx)   Costs accruing from a business's business operations.
  • self employed person (SEP)   A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.

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