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Business Interest Application Form

Business Interest Application Form

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Instructions and help about Business Interest Application Form

hello and welcome to the session in which we will discuss the business interest expense limitation what is the big idea of this business interest expense limitation is to limit the deduction of interest expense for C corporations the first thing we need to know is this limitation applies only to C corporation and what's the purpose of it the purpose of it is to curb the deduction of interest expense why interest expense is a form of financing that's fine you borrow money you pay interest on it nothing wrong with this except interest expense is tax deductible so what the government is saying that's a great you can deduct it but we want to limit that deduction since you are financing yourself so you don't go crazy and finance yourself with that and get a tax deduction so the tax cuts and jobs Act of 2017 introduced this limitation on interest expense deduction whether that interest expense is paid or accrued and this restriction as a as I just mentioned ap

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