The Business Interest Expense Limitation under IRC Section 163(j): What You Need to Know for the 2020 Tax Year
By Jennifer Beceiro, Tax Manager & Eliezer Gross, Real Estate Tax Director
The Tax Cuts and Jobs Act (TCJA) amended IRC Section 163(j) that limited the deductibility of business interest expense for taxable years beginning after December 31, 2017. Business interest expense is limited to the sum of the Taxpayer’s business interest income, floor plan financing interest, and 30% of Adjusted Taxable Income (ATI).
There are two situations that Taxpayers may not be subject to the 163(j)...
