Is Accrued Interest Deductible?

Is Accrued Interest Deductible? Taxpayers may generally deduct interest paid or accrued within a tax year under IRC § 163(a). Accrual-method taxpayers deduct interest under Treas. … The amount of the interest can be determined with reasonable accuracy; and. Economic performance has occurred with respect to the interest. Is accrued but unpaid interest deductible? Thus,