The IRS has a website with some useful information for taxpayers but is their information always accurate? This morning I was looking at a news release from their site containing a table comparing business tax provisions before and after TCJA. Here’s a snippet from their explanation about the new limitation on deducting business interest.
“The change limits deductions for business interest incurred by certain businesses. Generally, for businesses with 25 million or less in average annual gross receipts, business interest expense is limited to business interest income plus 30% of the business’s adjusted taxable income and floor-plan financing interest”
Unfortunately the opposite is true. Businesses with over 25 million in gross receipts are subject to the new limitations while businesses with gross receipts of 25 million or less are exempt. I suppose that they will eventually find and correct this error, but I would suggest that if you want accurate advice you go to a competent tax professional to verify what you see from the IRS. We at L&S Tax Services can help you with any questions you may have about how the new changes can affect your individual situation.