Are you affected by the business interest limitation?

Will your company be affected by the business interest tax deduction limitation in 2024? Generally, interest paid or accrued by a business is deductible up to 30% of adjusted taxable income (ATI). Taxpayers with average annual gross receipts that don’t exceed an applicable threshold for the three previous years are exempt from the interest deduction limitation. (For 2024, the applicable threshold is $30 million.) Note that business interest expense that isn’t deductible generally may be carried forward indefinitely to succeeding tax years. Contact us to learn how the limitation on deductible business interest may affect your business.