A heads-up that the IRS is changing limitations on the business interest expense expense deduction. The change is part of the Tax Cuts and Jobs Act enacted in December 2017 and the first COVID Act enacted in March 2020.
The regulation provides guidance to taxpayers on how to calculate the limitation, what constitutes interest for purposes of the limitation, which taxpayers and trades or businesses are subject to the limitation, and how the limitation applies in consolidated group, partnership, international, and other contexts.
There is a long table of contents that gives you an idea of what areas the IRS is looking at.
For the rare person who wants to read 569-pages of regulations, we include the document below. The department’s September submission to the Federal Register varies slightly from its July submission. Bless you. The rest of us look forward to your more detailed summary.
