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Describe the computation of the limit placed on the business interest deduction. Is the disallowed business...

Describe the computation of the limit placed on the business interest deduction. Is the disallowed business interest ever deductible?

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Beginning in 2018, the deduction of business interest expense is limited to the sum of business interest income plus 30 percent of the business's adjusted taxable income. Business interest is defined as any interest paid on debt allocable to a trade or business activity, and adjusted taxable income is taxable income allocable to the business activity computed before deductions for interest, depreciation, amortization, or depletion. Disallowed business interest can be carried forward indefinitely.

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