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- Form 8990 Limitation on Business Interest Expense
Form 8990 Limitation on Business Interest Expense
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aauccpa
Level 2
09-07-2024
03:30 PM
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Good afternoon,
ProSeries does not support Form 8990 which is required when a taxpayer receives a K-1 reporting Excess Business Interest Expense.
The business interest deduction is limited to:
1.The taxpayer's business interest income for the year
2. 30% pf the taxpayer's ATI for the year
3.The taxpayer's floor plan financing interest expense for the year
However, It seems that the partner cannot deduct their share of excess business interest expense, unless the related partnership reports sufficient excess taxable income to absorb the deduction. Items such as salaries have to be excluded from the calculation of Form 8990 Adjusted Taxable Income.
If anyone has any observations, they will be appreciated.
Angel
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