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Alert: Ten things you need to know now about the new interest expense limitation

December 12, 2018 Article 7 min read
Authors:
Kurt Piwko Stephen Eckert Emily Murphy Michael Monaghan
The Tax Cuts and Jobs Act imposed a limitation on the deduction of business interest expense starting in 2018. The Treasury Department and IRS recently released proposed regulations on this limitation, which included both expected guidance and a few surprises.

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As taxpayers look toward their fourth-quarter 2018 estimated tax payments and other tax planning, what are the top ten things you need to know about the interest expense limitation? Our latest alert covers:

  • Adjusted taxable income and the inventory penalty
  • Expansive definition of interest expense
  • Small businesses
  • Real estate businesses and related-party restrictions
  • Partnership and S corporation complications
  • Application to C corporations
  • Self-charged interest
  • Floor plan financing
  • Foreign businesses
  • Entities with multiple trades or businesses

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