What are the new limits on deducting business interest expense under the new tax law?

The new tax law caps net business interest expense in proposed regulations.  Tax reform caps net business interest write-offs generally at 30% of adjusted taxable income, with disallowed interest carried forward.  Firms with average annual receipts of $25 million or less over three years are exempt.  Real estate firms and farming businesses can elect out of the interest deduction limit, but they’ll have to use less favorable depreciation methods.

*Kiplinger Tax Letter