prepaid interest

prepaid interest definition - business

prepaid interest

The interest on a loan that has been paid but is not due until a following period. The Internal Revenue Service does not permit taxpayers to claim prepaid interest as an itemized deduction on tax returns.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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