THE TAX CUTS & JOBS ACT: 2018 DEDUCTION FOR NET BUSINESS INTEREST
Baker Peterson Franklin will be providing a series of articles regarding the tax reform changes.
Effective 2018, there will be a limitation on the deduction of business interest. Under this limitation, the deduction allowed for business interest for any tax year cannot exceed the sum of:
• the taxpayer’s “business interest income” for the tax year;
• 30% of the taxpayer’s adjusted taxable income for the tax year; plus
• the taxpayer’s floor plan financing interest for the tax year. More...