IRS Issues Guidance on Business Interest Expense Limitations under New Tax Law
On April 2, 2018, the Internal Revenue Service (IRS) published Notice 2018-28 to announce regulations that the agency intends to issue that will provide new rules related to the deduction of the business interest expense, as amended by the Tax Cuts and Jobs Act (P.L. 115-97). The Tax Cuts and Jobs Act amended section 163(j) of the Internal Revenue Code to provide new rules limiting the deduction of business interest expense for taxable years beginning after December 31, 2017. In general, newly amended section 163(j) imposes a limitation on deductions for business interest incurred by certain large businesses. For most large businesses, the business interest expense is limited to any business interest income plus 30 percent of the business’ adjusted taxable income.
- The text of the IRS notice is available here: https://www.irs.gov/pub/irs-drop/n-18-28.pdf.
- Comments are due on or before May 31, 2018. Comments may be sent electronically to the following e-mail address: Notice.Comments@irscounsel.treas.gov(link sends e-mail). Please include “Notice 2018-28” in the subject line.
- Advocacy contact: Dillon Taylor at 202-401-9787.
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