Tax Law News and Insights

Section 163(j), which was codified in the Tax Cuts and Jobs Act, generally limits a taxpayer's annual business interest expense deductions to the sum of business interest income plus 30% of EBITDA (or EBIT, beginning in 2022). Certain real estate businesses and businesses with gross receipts of $25 million or...

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On July 31, 2020, the US Internal Revenue Service (IRS) issued long-awaited proposed regulations (Proposed Regulations) regarding the federal tax treatment of certain profits interests, including carried interests, under Section 1061.1 The Proposed Regulations provide important clarifications on numerous points. Overview of Section 1061 Congress enacted Section 1061 as part of...

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With so many people currently working from home, the IRS apparently thought it would be an appropriate time to remind U.S. taxpayers about the availability of “home office” deductions and, in particular, whether they can be claimed when filing 2020 tax returns next year.  And so, in recently-issued IRS Tax Tip...

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