Before tax reform, there were not many limitations on a business's ability to deduct interest expense on their tax return. However, beginning in 2018, tax reform will significantly alter the ability to deduct business interest expense for a great many taxpayers.
Generally, under a revamped Section 163(j), business interest expense that can be deducted will be limited to 30% of the taxpayer's adjusted taxable income. Let's address a few questions related to this limitation:
There are many additional nuances to these interest limitation rules. However, as with many tax reform items, proper and timely planning can ensure the maximum interest deduction by minimizing the possible impact of these interest limitation provisions.
For more information contact us in one of our many locations.
You're Invited! Annual Not-For-Profit Accounting Update
Thursday, September 26, 2019
Hosted at Detroit Historical Museum
Save The Date!
Middle Market Manufacturing Outlook
Wednesday, October 23
Hosted at the Detriot Athletic Club
7:30 AM - 11:30 AM