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!
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.