indenture (plural indentures) (law) A contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice). (law) A document, written as duplicates separated by indentations, specifying such a contract. An indentation. (Can we add an example for this sense?) Translations
What it is: Interest expense is the cost of money. Interest expense is recorded on the income statement. Let's assume you need $500,000 to buy a house. The price of borrowing that money is interest, and it is expressed as a percentage of the amount of money you obtain.
To deduct these expenses, they are treated as investment interest expenses, and are subject to all of the rules and regulations involving investment interest expense. Report these expenses on Schedule A. Example: You short 100 shares of XYZ company on Feb. 1, 1996 for $10/share.