business interest limitation on a flow through entity - Spidell

business interest limitation on a flow through entity

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Message Board business interest limitation on a flow through entity

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 9 months, 2 weeks ago.

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  • #141313
    Richard Govenar
    Participant

    If the partnership doesn’t reach the 25 million limitation of gross receipts, than the business interest limitation does not apply. Is that correct? Say its gross receipts are 5 million, than it can deduct the entire interest on the flow through entity.

  • #141384
    Sandy Weiner
    Participant

    Correct. See IRC Sec. 163(j)(4)(A)