excess business interest expense Form 8990

[jeffery sauer]

Form 8990 Excess business interest expense is not fully operational in lacerte.  When you enter Box 13K - the amount entered will flow to page three of the Form 8990.  as a preparer/reviewer you must ENTER THE AMOUNT AGAIN - this item is an expense on the K-1 that is not reflected in the return and the amount should show on line 4 of Sch M-1 - it will not auto flow from any combination of boxes you check in lacerte.  You also have to manually enter on line 7 of the M-2.

Good luck in trying to figure out this shows in lacerte as it unwinds in future years - you have hunt and peek to find where it ultimately lands in lacerte as it reverses in future years.

So if you have a box 13K entry in a partnership return due to the partnership invested in another partnership - be prepared for this.  Lecerte tech team will likely not be able to help - I have tired 5 times and know one can solve in lacerte. 

I recognize that a partnership investing in another partnership that has the rare box 13k is a very limited audience so I can understand that this gets little attenction.

Lcerte could help by adding diagnostics - you have manually enter or adjust the M-1 and M-2 for excess business interest entries or a diagnostic that lacerte does not fully support this situation.  Just be real with preparer reviewer in this very rare situation.  let people know that the entries are in a very narrow scope and do not rely on the software to get the correct entries on all forms.

[Anonymous]

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