KPMG report: New section 163(j)—partnership issues

KPMG report: New section 163(j)—partnership issues

The new U.S. tax law created new rules that limit the deduction of business interest expense. With respect to interest incurred by a partnership, the drafters of new section 163(j) adopted a unique “entity approach,” providing that the interest limitation is applied and limited at the partnership level.


This KPMG report, published on September 24, 2018, provides a detailed explanation of the new interest deduction rules and explains why using the entity approach added significant complexity and ambiguity to the rules for both partners and partnerships. 


Read the September 24, 2018 report [PDF 175 KB] prepared by KPMG LLP: What’s News in Tax: The New Section 163(j): Partnerships Issues

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