The 163(j) Interest Deduction Limitation

Description

This course will focus on how the 2017 TCJA business interest expense deduction limit (§163(j)) will impact domestic entities and their owners.  While C corporations will be discussed, the course will primarily focus on the special computational and reporting rules that apply to domestic S corporations, S shareholders, domestic partnerships, individual partners, and corporate partners.  The treatment of partnerships and partners will be emphasized.

Highlights

• Determining when the entity or owners are subject to the 163(j) limit.
• The gross receipts test and the daunting aggregation rules.
• When and how to elect out for real estate T-Bs and farmers.
• The computation of adjusted taxable income.
• Special rules for S corporations and partnerships explained with numerous examples.
• Partner and S shareholder level considerations with several examples.
• K-1 reporting requirements for S corporations and partnerships.
• Discussion of IRS Form 8990 and the additional reporting required of partnerships.

Objectives

Identify the special computational and reporting rules that apply to domestic S Corporations, S shareholders, domestic partnerships, individual partners, and corporate partners.  Special allocation tactics for partners will also be explored.

Designed For

CPAs and lawyers.