Is accrued interest tax deductible?

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How is interest payable included in the tax calculation? Is it included on an accruals basis or on a cash basis? Do you know if the accrued interest is allowable for tax deduction?

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score 0 · Answer 1 · 2012-12-02T21:28:51+00:00

Most expenses that are allowed for tax purposes are deducted on an accrual basis. Interest accrual is also tax deductible based on the IRS website. See link below and search for accrual in the PDF file (Page 4):

http://www.irs.gov/pub/irs-pdf/p535.PDF