### Question
Can you define what excess interest expense means?


### Answer
**Excess interest expense** is defined as the following in *26 U.S.C. § 163*:

> the excess (if any) of—


(I) the corporation's net interest expense, over


(II) the sum of 50 percent of the adjusted taxable income of the corporation plus any excess limitation carryforward under clause (ii)

#### 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**

