I have an S-corporation who doesn't meet the small business taxpayer exception for form 8990.  When completing form 8990, there is no limitation on the s-corp's business interest expense which is very small.  Part III lines 38-41 populate for excess taxable income.   Do I report a portion of line 41 on each s-corp owner's K-1 based on their ownership share?   Do the owners then have to report this somewhere on their form 1040?  When is Schedule B completed?  I am having trouble following the form instructions so any clarification would be appreciated.