What is business interest? Whether you are a sole proprietor or have a corporation or an LLC, if you use debt to finance your business the interest on that debt is deductible by the business. Any ordinary and necessary expense for a business is deductible by the business. Here is an explanation form Investopedia about business interest:
http://www.investopedia.com/terms/b/business-interest-expense.asp#axzz1jLYKPaCZ
Just remember that if you use personal debt to finance your business you need to have your business entity reimburse you before the entity can deduct the interest.
Tomorrow we look at rental (or the dreaded passive) interest deduction.
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