Interest expense allocation related to debt-financed distributions from a passthrough entity.: An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on December 1, 1996. The length of the article is 499 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Tax treatment of interest expense incurred by a passthrough entity will be determined at the owner level or both the entity and owner levels, depending on whether the general allocation method or the optional allocation method is used. Under the general rule, deductibility of interest expense will depend on how the debt proceeds distributed to the particular owner are used. Under the optional rule, a portion of the interest expense can be allocated at the entity level, based on operating costs, and the remainder is allocated based on the general rule.

Citation Details
Title: Interest expense allocation related to debt-financed distributions from a passthrough entity.
Author: Charles P. Schulz
Publication:The Tax Adviser (Magazine/Journal)
Date: December 1, 1996
Publisher: American Institute of CPA's
Volume: 27 Issue: n12 Page: 732(2)

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