Business Interest Limitation Modification under the CARES Act
March 27, 2020 | Authored by Dopkins Tax Advisory Group
March 27, 2020 – Taxpayers were faced with a substantial limitation with the passing of the Tax Cuts and Jobs Act (TCJA) in the form of a business interest limitation under Code Section 163(j). With the limitation, effective for tax years beginning in 2018, taxpayers were limited in the amount of business interest they could deduct on their tax returns to 30% of their modified taxable income. The CARES Act has eased the limitation by increasing the allowable percentage from 30% of modified taxable income to 50% of modified taxable income for taxable years beginning in 2019 and 2020.
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Dopkins Tax Advisory Group
Our tax professionals include specialists who are proactive, strategic thinkers who work to maximize your cash flow. In addition to cash flow considerations, we also believe that tax planning is most effective when it is integrated with, and fully supports, your business plan and personal goals. Our approach to tax planning will help you better understand the tax implications of any proposed course of action, and together we can make the right decisions for your business. Contact us via email link below for more information. for more information contact your Dopkins Client Service Coordinator or Gregory Urban at gurban@dopkins.com