October 28, 2025
Under the new Big Beautiful Bill, the business interest deduction (Section 163(j)) rules have been relaxed, allowing more businesses to deduct their interest expense. Here’s what’s changed:
- Depreciation and amortization are now added back into Adjusted Taxable Income (ATI), increasing the base used to calculate the 30% limit
- This means a higher portion of business interest can now be deducted each year
- The change is especially beneficial for real estate, manufacturing, construction, and capital-intensive industries
We’ll review your interest and depreciation schedules in your next planning session to ensure we’re taking full advantage of this new flexibility.
If your business has significant financing or debt obligations, this could be a valuable savings opportunity for 2025 and beyond.
If you have any questions, please feel free to reach out to our team!
>> Schedule a strategy session today
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