Partner and Tax Planning head Saul Rudo was quoted in Law360 on financing strategies in advance of the Tax Cuts and Jobs Act restrictions. Saul noted that the 2022 change could increase interest in equity financing and other debt alternatives like leasing, as well as limits to leveraging debt. He added, “It’s an issue that’s already on people’s radar screens and I think there is concern that, for companies that are struggling a little bit, the interest limitations . . . are going to make those companies potentially struggle more.” Another concern surrounds the new tax law’s repeal of a two-year carryback on net operating losses, which Saul suggested would affect companies that are profitable in one year, then experience temporary losses that reduce the cash available to them. (“Looming Cap On Borrowing Could Alter Financing Strategies,” February 23, 2018)
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Partner and Chair, Transactional Tax Department+1.312.902.5664
Chicago
