Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Lacerte Tax
- :
- Lacerte Tax Discussions
- :
- Excess Business Interest Carryforward
Excess Business Interest Carryforward
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
redcarfella
Level 1
03-25-2022
03:50 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
In 2020, I received an outside K-1 from a 1065 (Company A ) that flowed into another 1065 (Company B) that I prepare. The K-1 from Company A had excess business interest expense that went to 8990 Schedule A as a carryforward for Company B. In 2021, Company A is no longer subject to 163j.
Per the 8990 instructions, "In the event a partnership allocates excess business interest expense to one or more of its partners, and in a later tax year the partnership is an exempt entity, the excess business interest expense from the prior year is treated as business interest expense paid or accrued by the partner in the later year.”
In 2021 Lacerte, what do I need to do to free up the carryforward? Should I be able to deduct the EBIE carryforward? There is a spot on the K-1 input to force the Schedule A but I don't see the impact anywhere. Company B has no other activity except K-1 from Company A. Thanks in advance!
Labels
