Final regulations under section 163(j), limitation on deductions for certain business interest expenses

Final regulations under section 163(j)

Final regulations under section 163(j) concerning the limitation on deductions for certain business interest expense ("BIE") are published today, January 19, 2021, in the Federal Register.

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These final regulations are the latest in a series of regulations implementing changes made to section 163(j) by the 2017 tax law (Pub. L. No. 115-97)—often referred to as the “Tax Cuts and Jobs Act” (“TCJA”)—and amendments made by the 2020 “Coronavirus Aid, Relief, and Economic Security Act” (“CARES Act”) (Pub. L. No. 116-136).

The final regulations relate to proposed regulations published in the Federal Register in September 2020, and the preamble to these final regulations states that Treasury and the IRS intend to finalize other portions of the 2020 proposed regulations in the future once additional comments have been considered. 
 

Read a January 2021 report [PDF 419 KB] prepared by KPMG LLP: KPMG report: Final regulations under section 163(j), limitation on deductions for certain business interest expenses

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