Source: https://irc.bloombergtax.com/public/uscode/doc/irc/163
Timestamp: 2020-05-30 08:29:04
Document Index: 200264862

Matched Legal Cases: ['§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163', '§ 163']

I.R.C. § 163(j)(10) Special Rule For Taxable Years Beginning In 2019 And 2020
I.R.C. § 163(j)(10)(A) In General
I.R.C. § 163(j)(10)(A)(i) In General —
Except as provided in clause (ii) or (iii), in the case of any taxable year beginning in 2019 or 2020, paragraph (1)(B) shall be applied by substituting “50 percent” for “30 percent”.
I.R.C. § 163(j)(10)(A)(ii) Special Rule For Partnerships —
I.R.C. § 163(j)(10)(A)(ii)(I) —
clause (i) shall not apply to any taxable year beginning in 2019, but
I.R.C. § 163(j)(10)(A)(ii)(II) —
unless a partner elects not to have this subclause apply, in the case of any excess business interest of the partnership for any taxable year beginning in 2019 which is allocated to the partner under paragraph (4)(B)(i)(II)
I.R.C. § 163(j)(10)(A)(ii)(II)(aa) —
50 percent of such excess business interest shall be treated as business interest which, notwithstanding paragraph (4)(B)(ii), is paid or accrued by the partner in the partner's first taxable year beginning in 2020 and which is not subject to the limits of paragraph (1), and
I.R.C. § 163(j)(10)(A)(ii)(II)(bb) —
50 percent of such excess business interest shall be subject to the limitations of paragraph (4)(B)(ii) in the same manner as any other excess business interest so allocated.
I.R.C. § 163(j)(10)(A)(iii) Election Out —
A taxpayer may elect, at such time and in such manner as the Secretary may prescribe, not to have clause (i) apply to any taxable year. Such an election, once made, may be revoked only with the consent of the Secretary. In the case of a partnership, any such election shall be made by the partner ship and may be made only for taxable years beginning in 2020.
I.R.C. § 163(j)(10)(B) Election To Use 2019 Adjusted Taxable Income For Taxable Years Beginning In 2020
I.R.C. § 163(j)(10)(B)(i) In General —
Subject to clause (ii), in the case of any taxable year beginning in 2020, the taxpayer may elect to apply this subsection by substituting the adjusted taxable income of the taxpayer for the last taxable year beginning in 2019 for the adjusted taxable income for such taxable year. In the case of a partnership, any such election shall be made by the partnership.
I.R.C. § 163(j)(10)(B)(ii) Special Rule For Short Taxable Years —
If an election is made under clause (i) for a taxable year which is a short taxable year, the adjusted taxable income for the taxpayer's last taxable year beginning in 2019 which is substituted under clause (i) shall be equal to the amount which bears the same ratio to such adjusted taxable income determined with out regard to this clause as the number of months in the short taxable year bears to 12.
I.R.C. § 163(j)(11) Cross References
I.R.C. § 163(j)(11)(A) —
I.R.C. § 163(j)(11)(B) —
(Aug. 16, 1954, ch. 736, 68A Stat. 46 ; Apr. 10, 1963, Pub. L. 88-9, Sec. 1(a), (c), 77 Stat. 6, 7; Feb. 26, 1964, Pub. L. 88-272, title II, Sec. 224(c), 78 Stat. 79; Dec. 30, 1969, Pub. L. 91-172, title II, Sec. 221(a), 83 Stat. 574; Dec. 10, 1971, Pub. L. 92-178, title III, Sec. 304(a)(2), (b)(2), (d), 85 Stat. 523, 524; Oct. 4, 1976, Pub. L. 94-455, title II, Sec. 205(c)(3), 209(a), title XIX, Sec. 1901(b)(3)(K), (8)(C), 1906(b)(13)(A), 90 Stat. 1535, 1542, 1793, 1794, 1834; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 231(b), title III, Sec. 310(b)(2), 96 Stat. 498, 596; Oct. 19, 1982, Pub. L. 97-354, Sec. 5(a)(18), 96 Stat. 1693; July 18, 1984,Pub. L. 98-369, div. A, title I, Sec. 42(a)(3), 56(b), 127(f), 128(c), title VI, Sec. 612(c), 98 Stat. 556, 574, 652, 654, 911; Oct. 22, 1986, Pub. L. 99-514, title V, Sec. 511(a), (b), title IX, Sec. 902(e)(1), title XIII, Sec. 1301(j)(3), title XVIII, Sec. 1803(a)(4), 1810(e)(1), 100 Stat. 2244, 2246, 2382, 2657, 2793, 2825; Dec. 22, 1987, Pub. L. 100-203, title X, Sec. 10102(a), (b), 10212(b), 101 Stat. 1330-384, 1330-386, 1330-406; Nov. 10, 1988, Pub. L. 100-647, title I, Sec. 1005(c)(1)-(9), (12), 1006(u)(1), 1009(b)(6), title II, Sec. 2004(b)(1), 102 Stat. 3390-3392, 3427, 3449, 3598; Dec. 19, 1989, Pub. L. 101-239, title VII, Sec. 7202(a), (b), 7210(a), 103 Stat. 2330, 2331, 2339; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11701(b), (c), 104 Stat. 1388-507; Aug. 10, 1993, Pub. L. 103-66, title XIII, Sec. 13206(d), 13228; Aug. 20, 1996, Pub. L. 104-188, title I, Sec. 1703(n)(4), 1704(f)(2), 110 Stat. 1755; Pub. L. 105-34, title III, V, X, XVI, Sec. 312(d)(1), 503(b)(2), 1005(a), 1604(g)(1), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-277, title IV, Sec. 4003(a), Oct. 21, 1998, 112 Stat 2681; Pub. L. 106-170, title V, Sec. 544, Dec. 17, 1999, 113 Stat 1860; Pub. L. 108-27, title III, Sec. 302(b), May 28, 2003, 117 Stat. 752; Pub. L. 108-357, title VIII, Sec. 838(a), 841(a), 845, Oct. 22, 2004, 118 Stat. 1418; Pub. L. 109-135, title IV, Sec. 403(a)(15), Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-222, title V, Sec. 501, May 17, 2006, 120 Stat. 345; Pub. L. 109-432, div. A, title IV, Sec. 419, Dec. 20, 2006, 120 Stat. 2922; Pub. L. 110-142, Sec. 3(a), Dec. 20, 2007, 121 Stat. 1803; Pub. L. 111-5, div. B, title I, Sec. 1232, Feb. 17, 2009, 123 Stat. 115; Pub. L. 111-147, Sec. 502(a), (c), Mar. 18, 2010, 124 Stat. 71; Pub. L. 111-312, title VII, Sec. 759, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title II, Sec. 204, Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title I, Sec. 104(a), title II, Sec. 220(h), 221(a)(25)(A), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 152(a); Pub. L. 115-97, title I, Sec. 11043(a), 13301(a), Dec. 22, 2017; Pub. L. 115-123, Div. D, title I, Sec. 40202(a), Feb. 9, 2018, 132 Stat. 64; Pub. L. 115-141, Div. U, title IV, Secs. 401(a)(48), (b)(12), (c)(1)(C), (3)(B), Mar. 23, 2018, 132 Stat. 348; Pub. L. 116-94, Div. Q, title I, Sec. 102(a), Dec. 20, 2019; Pub. L. 116-136, Div. A, title II, Sec. 2306(a), Mar. 27, 2020.)
2020 — Subsec. (j). Pub. L. 116-136, Sec. 2306(a), amended subsec. (j) by redesignating par. (10) as par. (11), and adding a new par. (10).
Amendments by Pub. L. 116-136, Sec. 2306(a), effective for taxable years beginning after December 31, 2018.
‘(D) The amendments made by this section shall not apply to instruments issued after July 10, 1989, pursuant to a reorganization plan in a title 11 or similar case (as defined in section 368(a)(3) of the Internal Revenue Code of 1986) if the amount of proceeds of such instruments, and the maturities of such instruments, do not exceed the amount or maturities specified in the last reorganization plan filed in such case on or before July 10, 1989.'
‘(2) Special rule for demand loans, etc. - In the case of any demand loan (or other loan without a fixed term) which was outstanding on July 10, 1989, interest on such loan to the extent attributable to periods before September 1, 1989, shall not be treated as disqualified interest for purposes of section 163(j) of the Internal Revenue Code of 1986 (as added by subsection (a)).'
Section 304(e) of Pub. L. 92-178 provided that: ‘The amendments made by this section to section 57 of the Internal Revenue Code of 1954 shall apply to taxable years beginning after December 31, 1969. The amendments made by this section to section 163 of such Code shall apply to taxable years beginning after December 31, 1971.'