Page 173 - Large Business IRS Training Guides

Deduction of Business Interest Expense -

General

• Carryforward of a consolidated group’s

disallowed business interest expense includes

carryforward’s from the group’s prior

consolidated return year plus carryforwards

from separate return years.

• All current-year business interest expense is

deducted in the current year, before any

carryforwards from prior years.

• Carryforwards are deducted in the order of

taxable years in which they arose, beginning

with the earliest year.

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