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 rot.

Highlights
 

• Business interest expense (BIE) allowed and suspended


• Adjusted taxable income computation – Twists, twists and turns


• Determining whether small business exempt from the rules


• Determining whether business “tax shelter” is on the hook for §163(j) 


• What in the dickens 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