Which of the Following Is a True Statement About the Limitation

question 54

Multiple Choice

Which of the following is a true statement about the limitation on business interest deductions?

• A)Interest disallowed by this limitation is carried back three years and then forward five years.
• B)The limitation is calculated as a percentage of the taxpayer's total taxable income.
• C)This limitation is not imposed on businesses with average annual gross receipts of $26 million or less for the prior three taxable years.
• D)All of the choices are false.
• E)All of the choices are true.