Washington DOR Issues Draft Advisory on B&O Deductibility of Interest Received on Investments, Loans

The Washington Department of Revenue April 1 issued a draft excise tax advisory on the business and occupation tax deduction for interest received on loans or investments secured by a first mortgage or deed of trust. The advisory includes that: 1) a taxpayer can’t take the deduction if they are located in more than 10 states; 2) taxpayers other than those in the banking, lending, or securities business will qualify for the deduction only if their business is a financial services business; 3) the deduction is only available if the interest income is received from an investment or loan primarily ...