The U.S. Treasury Department and IRS have released proposed regulations relating to the business interest limitation provisions of section 163(j)—a measure enacted as part of the new U.S. tax law. For tax years beginning after 2017, section 163(j) generally limits the deduction for business interest expense to the sum of a taxpayer’s “business interest income,” 30% of adjusted taxable income, and floor plan financing interest.
The proposed regulations [PDF 1.5 MB] contain detailed information regarding the application of section 163(j) along with several references to tax-exempt organizations. In particular, the proposed regulations provide:
Read a KPMG report of initial impressions and observations about the proposed regulations under section 163(j) for additional detail.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Preston Quesenberry | +1 202 533 3985 | email@example.com
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