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U.S. IRS Provides Infrastructure Safe Harbor for Electing Real Property Trade or Business Exemption for Interest Deduction Limitation

|Approved Changes|United States
United States

On 27 November 2018, the U.S. IRS has issued Revenue Procedure 2018-59, which provides an infrastructure safe harbor that allows taxpayers to treat certain infrastructure trades or businesses as real property trades or businesses solely for purposes of qualifying as an electing real property trade or business under section 163(j).

Section 163(j) generally provides that for taxable years begi…

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