Read this IRS link as it explains the limitation on the deduction for business interest expense. Entering this does not affect your tax return. it is telling you that $10,655 business interest cannot be claimed because there is a 163(j) limitation on the deduction for business interest expense?
Generally, taxpayers can deduct interest expense paid or accrued in the taxable year. However, if section 163(j) applies, the amount of deductible business interest expense in a taxable year cannot exceed the sum of:
- the taxpayer’s business interest income for the year;
- 30% of the taxpayer’s adjusted taxable income (ATI) for the year; and
- the taxpayer’s floor plan financing interest expense for the year
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