On line 18 of the U.S. corporate income tax return which interest expense do i report?

On line 18 of the U.S. corporate income tax return which interest expense do i report?
What interest expense is used. I have interest expense for $10,000 from a loan to purchase state of arizona bonds and I have interest expense of $17,400 from other business loans. Do I add these up and include them in line 18 of the tax return or do I use one or the other. I would really appreciate any help on this. Thanks in advance.


Answers:

Andrew S:  line 20 , i think
2007-03-06 15:46:06
Molly:  If the bonds earn tax exempt income, then you cannot deduct the interest. The business loan interest sounds deductible.
2007-03-06 16:48:10
Chosen Answer
tma:  If the interest income from the bonds is tax-exempt, then you would not be able to deduct the interest expense. Otherwise, I believe you can deduct the interest expense in full on line 18. http://www.irs.gov/pub/irs-pdf/i1120_a.pdf see page 9
2007-03-06 16:58:30