Skip to Content

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.

People with laptops

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

Related Thinking

U.S. Capitol building during the day against a cloudy sky.
May 20, 2024

Expanded Inflation Reduction Act electric vehicle (EV) and charging station credits for businesses, tax-exempts, and governmental entities

Article 11 min read
Professionals on steps
May 17, 2024

OECD Pillar 2 tax framework will take effect in many countries in 2024

10 min read
Factory worker standing next to heavy machinery while using a tablet device
May 16, 2024

48C Round 2 funding opportunity requires applicants to act quickly

Article 7 min read