New Law Limits Investment Interest Expense Deductions
- February24, 2026
- Publications
In their latest article, “New Law Limits Investment Interest Expense Deductions,” for the New York Law Journal, Ezra Dyckman and Charles S. Nelson break down how the 2025 One Big Beautiful Bill Act reshapes the deductibility of investment interest, and why tracing the use of debt proceeds matters more than ever for real estate owners, investors, and partnerships.
“Although taxpayers in New York State have long faced limits on itemized deductions at the state level, the new federal limitation on itemized deductions is yet another addition to a complicated and sometimes overlapping set of rules that can limit the use of interest deductions and losses more generally, including the investment interest expense and business interest expense limitations and the passive loss rules.”