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


Betty Mak, Maxar Technologies Inc.


  • 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.

Location: Date: March 23, 2021 Time: 2:45 pm - 4:00 pm