Share with your friends

Business interest expense deduction limitations under section 163(j), regulations released to Federal Register

Business interest expense deduction limitations

The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register final regulations (T.D. 9905) and a notice of proposed rulemaking (REG-107911-18) under section 163(j) concerning the limitation on deductions for certain business interest expenses.


Related content

The regulations reflect changes made by the 2017 tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA)—and statutory amendments made by the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136).

Read the final regulations [PDF 1.17 MB] (569 pages)

Read the proposed regulations [PDF 614 KB] (285 pages)

The final and proposed regulations are scheduled to be published in the Federal Register on September 14, 2020.

Comparing today’s versions of final and proposed regulations against versions released by IRS in July 2020

The IRS on July 28, 2020, posted versions of these final and proposed regulations on the IRS website. Those versions of the final and proposed regulations include the following statement:

This document has been submitted to the Office of the Federal Register (OFR) for publication and is currently pending placement on public display at the OFR and publication in the Federal Register. The version of the [regulations] released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

These are unofficial documents produced by KPMG that are intended to show what changes, if any, were made to the regulations prior to being released to the Federal Register for publication. These KPMG documents have not been reviewed for accuracy.

The purpose of this report is to provide text of the regulations. A discussion of differences  (that is, differences between the versions released by the IRS in July 2020 and the versions released this afternoon) will be provided in a future report from KPMG.

Read KPMG’s report of initial impressions of the section 163(j) regulations based on the July 2020 versions. 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal