Business interest limit (163(j))
30% of EBITDA
Can You Write Off Business Interest Limit)?
Short answer: Large businesses can deduct business interest only up to 30% of EBITDA (restored from 2025); businesses under about $31 million in gross receipts are exempt.
Disallowed interest carries forward.
Records to keep: Keep the receipt, proof of payment, and a note or log showing business use; for mixed-use items, track the business percentage.
BW-B23-01663
medium risk
Business interest limit (163(j))
30% of EBITDA
General Business
Equipment & Gear
Business Equipment & Products
Large businesses can deduct business interest only up to 30% of EBITDA (restored from 2025); businesses under about $31 million in gross receipts are exempt.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Large businesses can deduct business interest only up to 30% of EBITDA (restored from 2025); businesses under about $31 million in gross receipts are exempt. Disallowed interest carries forward.
Category
- Business Equipment & Products
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