As part of the Tax Cuts and Jobs Act, for tax years beginning on or after January 1, 2018, the amount of business interest that is deductible for federal income tax purposes may be limited. The state of Missouri recently announced that it has “decoupled” from this federal business interest deduction limitation.

Missouri taxpayers should subtract interest expense paid or accrued in the current taxable year, but not deducted because of the federal limitation. In future years, Missouri taxpayers must add back any interest expense paid or accrued in a previous year, but allowed as a deduction in the current year under the federal carryforward provisions. Learn more about our federal tax services and let us help you stay ahead of regulatory changes, ensuring you remain informed in a timely manner.

If a 2018 income tax return was filed and the business interest deduction limitation applied, an amended Missouri income tax return may be required. RubinBrown has decades of experience in the tax industry, helping companies smoothly navigate regulatory changes, such as the Missouri source business income deduction announcement. Discover our tax consulting services and learn how we can support your business today.

 

 

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Published: 07/16/2019

_{^{Readers should not act upon information presented without individual professional consultation.}}

_{^{Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.}}