Demystifying the CARES Act Webinar - April 3, 2020 CARES Act Webinar – BD 4.3.2020 | Page 11

BUSINESS TAX PROVISIONS
Interest Deduction Limitation Relief
• Section 163(j) updates: interest expense deduction
previously limited to 30% of adjusted taxable income
("ATI") increased to 50% of ATI
• Provides special rule for a partnerships 2019 disallowed
interest expense
• Allows for an election to apply 2019 ATI to the 2020 163(j)
computation
• Adds complexity to 2019 and 2020 tax returns – consult
with your tax advisor
11