New limit on interest expense deductions – Will it affect your business?

Description

Abstract: The Tax Cuts and Jobs Act introduced a variety of tax benefits for businesses. At the same time, the act placed limits on several tax breaks, including the amount of interest expense a business may deduct. This article takes a closer look at the business interest limit and possible exemptions for small businesses, and notes that some real property businesses may elect not to apply the business interest limit, but must pay some penalties for that election. The article suggests that business owners should be aware that the IRS is expected to issue future guidance on these matters in the coming months.