### Question
How is the term disallowed interest expense defined?


### Answer
The term **disallowed interest expense** is defined in *26 U.S.C. § 1277* as the following:

> the aggregate amount disallowed under subsection (a) with respect to the market discount bond

#### Citation:
  - *26 U.S.C. § 1277*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART V-SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS > Subpart B-Market Discount on Bonds**

