### Question
What is the definition of net interest expense?


### Answer
The definition of **net interest expense** is as follows in *26 U.S.C. § 163*:

> the excess (if any) of—


(i) the interest paid or accrued by the taxpayer during the taxable year, over


(ii) the amount of interest includible in the gross income of such taxpayer for such taxable year

#### Citation:
  - *26 U.S.C. § 163*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

