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.
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