Non-management employees who earn their pay by the hour generally are non-exempt too, even if they earn $455 or more per week. Such employees are commonly referred to as hourly non-exempt. Update: The U.S. Department of Labor (DOL) increased the salary threshold from $455 to $913 per week ($47,476 per year).
DEFINITION of 'Interest Expense'. The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any type of borrowings â bonds, loans, convertible debt or lines of credit. It is basically calculated as the interest rate times the outstanding principal amount of the debt. Interest expense on the income statement represents interest accrued during the period covered by the financial statements, and not the amount of interest actually paid over that period.
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.