Understanding and Applying Section 163(j) Under the Final Regulations

Moderator:

Betty Mak, Maxar Technologies Inc.

Speakers:

• Lori Hellkamp, Jones Day
• David G. Noren, McDermott Will & Emery LLP
• Paul M. Schmidt, Baker & Hostetler LLP
• Gary B. Wilcox, Mayer Brown LLP

Session Description:

This timely session will explore a number of important substantive and practical dimensions of the new final and proposed regulations implementing the new limitation on the deduction for business interest expense in section 163(j), including:

• the definition of interest and anti-abuse rule;
• the computation of adjusted taxable income and the treatment of depreciation, amortization, or depletion deductions—currently and in 2022;
• application to consolidated groups;
• application to controlled foreign corporations; and
• effective dates and consistency rules—which set of rules apply and to which year(s)?

Learning Objectives:

After this session, participants will be able to: (1) define “interest” for IRC section 163(j) purposes; (2) understand how depreciation, amortization, and depletion deductions impact the computation of adjusted taxable income; (3) understand the application of IRC section 163(j) to controlled foreign corporations; and (4) understand the effective dates of the regulations and their consistency rules.