Business Interest Expense Limitation Under §163(j): Problems and Solutions (Completed)

Keeping Financing From Being Even More Expensive Working Problems and Solutions
Borrowing to finance a business is expensive enough to begin with. Losing the tax deduction for business interest expense (BIE) opens a new wound and pours salt into it. If new §163(j) applies to limit the BIE deduction, interest expense stacks up like checkers on a bad checkerboard. If it stacks up on you, then maybe, just maybe, you can deduct it later, or perhaps it will sit there and just rot. This course takes a working problems and solutions approach to unraveling it all.

Who Should Attend
Anyone interested in maximizing (and accurately reporting on relevant tax returns) interest expense deductions under §163(j).

Topics Covered

• Business interest expense (BIE) allowed and suspended
• Adjusted taxable income computation — Twists, twists and turns
• Determining whether "small business" is exempt from the rules
• Determining whether business is "tax shelter" on hook for §163(j)
• What is excess business interest expense (EBIE) anyway?
• What elections out are available? What do they cost?
• How do C Corps fare? S Corps?
• How do partnership stack things? Where do the stacks end up sitting?
• How the attribution rules can hand your head to you
• Planning to keep BIE deductions flowing to begin with

Learning Objectives

• Identify the ropes of the new rules and maximize deductions for business interest expense
• Differentiate which business interest expense (BIE) is allowed and suspended

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (3 hours)

Program Prerequisites
Basic understanding of §163(j).

Advance Preparation
None