Page 205 - Large Business IRS Training Guides

Ownership of Pass-through Entities Not Subject to

IRC § 163(j) by Reason of the Small Business Exemption

• The owner (partner or shareholder) of a pass-through

entity not subject to IRC § 163(j) by reason of the small

business exemption who is subject to IRC § 163(j) at

their level must include in their IRC §163(j) limitation

computation their share of the pass-through’s,

• business interest expense,

• adjusted taxable income, and

• business interest income

• The owner must request the pass-through entity to

separately state, in sufficient detail, the items

necessary to figure these amounts.

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