WASHINGTON, DC–Last week the Treasury Department released guidance on the new limitation on the deductibility of business interest under the new tax law.

The notice focuses on on interest expense carryforwards from prior years, corporate interest deductions, and consolidated corporate groups — but it leaves unresolved certain key questions for real estate investors, The Real Estate Roundtable wrote in its weekly newsletter. Namely: whether interest on debt incurred by an owner to fund an investment in a partnership or other entity engaged in a real property trade or business, constitutes interest on debt properly allocable to that real estate business.

For taxpayers with revenue over $25 million, the Tax Cuts and Jobs Act capped the amount of business interest that can be deducted annually to no more than 30% of EBITA. The provision includes several exceptions, including an exception critical to real estate for an “electing real property trade or business.”