### Question
How is the term allocable interest deductions defined?


### Answer
The term **allocable interest deductions** is defined in *26 U.S.C. § 172* as the following:

> deductions allowed under this chapter for interest on the portion of any indebtedness allocable to a corporate equity reduction transaction

#### Citation:
  - *26 U.S.C. § 172*
  - 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**

