Page 146 - Large Business IRS Training Guides
P. 146

Allocation Rules - General










          Before allocating between excepted and non-excepted

          trades or businesses, interest under  IRC § 163(j), taxpayer


          must:



                 • Determine if the taxpayer meets the small business


                     exemption.


                 • Determine the amount of interest expense allocated


                     between investment, personal, and other.


                 • Identify excepted trades or businesses.



          Limitation under IRC § 163(j) does not apply to interest


          expense properly allocable to an “excepted trade or


          business.”




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