Interest Expense Deduction Individuals and Businesses
Author: Barbara Weltman, Sidney Kess
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Law Updates for EAs and OTRPs
1 hour Federal Tax Updates for CTEC |
The focus of this course is on tax rules for deducting interest payments. It covers the rules for individuals, including mortgage interest, student loan interest, and investment interest. It also covers business interest expense and the limitation that applies for deducting it.
Publication Date: June 2023
Topics Covered
- Residence interest
- Interest Allocation
- Qualified Residence Interest
- Acquisition Indebtedness
- Home Equity Indebtedness
- Deducting Points and Penalties
- Student Loan Interest
- Other Personal Interest
- Investment Interest
- Passive Activity Interest
- Business Interest
- Election Out of the Limitation
- Business Interest Limitation
- Original Issue Discount
- Debt Forgiveness
- SBA Disaster Loans
- Below Market Loans
- Refunds of Interest
- Nondeductible Interest
- Construction Loans
Learning Objectives
- List the categories for interest expense
- Describe the rules for deducting interest for individuals who itemize
- Explain student loan interest and strategies for handling this interest expense
- Describe the treatment of interest on debt used in a passive activity
- Explain the interest expense limitation for businesses
- Identify the maximum annual deduction for student loan interest
- Identify a scenario in which COD income will be excluded from gross income
- Identify the loan amount used to give the de minimis exception to the imputed interest on below market loans to individuals within a family context
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
