Page 199 - Large Business IRS Training Guides

Example (cont’d)

• The partnership’s total current year business

interest expense deduction is $60,000, which

is 30% of ATI + BII ($30,000 + $30,000).

• The partnership has disallowed business

interest expense, termed EBIE, of $20,000,

which is the difference between BIE and

current year business interest expense

deduction ($80,000 − $60,000).

129