Welcome back! Ask questions, get answers, and join our large community of tax professionals.

51531

51531

The following diagnostic is generating:

Form 8990: The program does not automatically carry the limited business interest expense, when the taxpayer is subject to section 163(j), back to the affected business activity. The limited business interest expense must be manually allocated to each source in proportion to the total amount of business interest expense from each source. Attach a schedule which indicates the amount and line item on the tax return where the business interest expense is being deducted.

Solution:

clicking on the diagnostic takes you to Screen 88>Form 8990 - Business Interest Income>Itemized list of where the business interest expense is being deducted (Ctrl+E) where they can explain where they manually made the adjustments

Labels (2)