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


### Answer
**Net interest expense** is defined as the following 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**

