The Smith family operates a very successful landscaping business. In 2016, 2017 and 2018 the average annual gross receipts for the business (a Subchapter S corporation) was $31.3 million. In 2019 the business borrowed $20 million from the bank and is expected to incur approximately $1.2 million in interest costs. Because all the borrowed money will not be used immediately, they deposited the funds in a bank CD and anticipate earning $500,000 in interest income. You are assisting the Smiths with 2019 tax planning. They heard that the 2017 tax law changed the deductibility of interest costs and would like to know the amount of interest they can deduct in 2019. What will you tell them?