DESCRIPTION
This module introduces the foundational framework for applying Section §163(j) and evaluating interest deduction limitations. Participants identify what qualifies as business interest expense and business interest income, compute Adjusted Taxable Income (ATI), and determine when Section §163(j) applies. Learners also evaluate potential exceptions to the limitation and compute an estimated Section §163(j) limitation. The module concludes with a case study requiring participants to analyze client information and apply the Section §163(j) framework to assess a potential client’s business interest expense limitation.
LEARNING OBJECTIVES
- Identify when a taxpayer is subject to the limitations under Section §163(j).
- Distinguish between items that qualify as business interest expense and those that do not for purposes of Section §163(j).
- Calculate Adjusted Taxable Income (ATI) used in determining the Section §163(j) limitation.
- Analyze client information to evaluate the potential impact of Section §163(j) on a taxpayer.
