Home      Login


Parsing the Final and Proposed Regulations Under Section 163(j)  


Author:  Larry Crouch.; Nathan Tasso.; Eric Grosshandler.


Source: Volume 38, Number 02, Winter 2021 , pp.3-37(35)




Journal of Taxation of Investments

next article > |return to table of contents

Abstract: 

This article summarizes the recent final and new proposed regulations issued under Section 163(j), with an emphasis on key aspects of the regulations that differ from the original proposed regulations under Section 163(j). The regulations fill out many details of the implementation of Section 163(j)—including business interest expenses, categories of interest, adjusted taxable interest, ordering rules, application to C corporations, application to consolidated groups, earnings and profits, IRC Sec. 382 and disallowed business interest expense, application to partnerships, excepted businesses, application to CFCs and U.S. shareholders, and application to foreign persons—which was enacted as part of the Tax Cuts and Jobs Act of 2017. Members of the Shearman & Sterling tax department who contributed to this article include Ryan Bray, Kristen Garry, Todd Lowther, Michael Shulman, Jay Singer, Derek Kershaw, Austin Jones, Daniel Kachmar and Joshua Savey.

Keywords: T.D. 9905, business interest expenses, categories of interest, adjusted taxable interest, ordering rules, application to C corporations, application to consolidated groups, earnings and profits, IRC Sec. 382 and disallowed business interest expense,

Affiliations:  1: Shearman & Sterling LLP Tax Department; 2: Shearman & Sterling LLP; 3: Shearman & Sterling LLP.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $37

next article > |return to table of contents