Global Public Policy
On November 26, the Internal Revenue Service issued proposed regulations related to limits on the business interest expense deduction.
The provision was passed as part of the Tax Cuts and Jobs Act (TCJA) and ICSC has been awaiting the Department of Treasury to issue the corresponding regulations. The deduction for business interest expense is generally limited to 30 percent of the taxpayer’s adjusted taxable income. Real estate trades or businesses may elect out of the limit but must use slightly longer depreciation schedules found in the Alternative Depreciation System (ADS). Small businesses whose gross receipts are $25 million or less are exempt.
ICSC is currently collecting feedback to provide comments on the proposed regulations. If you have any questions or comments, please contact Phillips Hinch, Vice President of Tax Policy, at phinch@ICSC.org or (202) 626-1402.
Vice President, Tax Policy