Page 212 - Large Business IRS Training Guides

Regulated Investment Companies (RICs)

• Applicable rules found in IRC §§ 851– 855 and

IRC § 860.

• Typical RIC incurs very little interest expense.

• RIC’s income is primarily from investing in stock

and securities, and may include:

• Interest income

• Dividend income

• Capital gain income

• The IRC § 163(j) limitation is unlikely to impact

the interest expense deductions of a typical RIC.

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