The IRS has issued a long-awaited package of guidance regarding the Sec. 163(j) limitation on business interest expense deductions.
The guidance includes final and proposed regulations as well as a proposed revenue procedure with a safe harbor for operators of qualified residential living facilities and FAQs on the aggregation rules for determining a taxpayer’s gross receipts for purposes of the small business with exception to the business interest expense limitation.
The business interest expense deduction limitation does not apply to certain small businesses whose gross receipts are $26 million or less, electing real property trades or businesses, electing farming businesses and certain regulated public utilities. Learn more.