How to handle K-1 (Form 1065) Box 13 Code K?

[Mel7777]

Hello!  I have a partner's K1 (Form 1065) Box 13 indicates Code K for excess business interest expense.  I have not handled one with this before and I see that this needs to be carried forward until there is excess taxable income from the partnership.  I also see that ProSeries says this needs to be manually entered onto the form.  From the client's prior return, I see the carryforwards are reported on Form 8990.  This is not a form option in ProSeries.  Can anyone provide any insight on the best way to manage this? or is there  workaround?  TIA!

[Stanley2]

This is for partnerships with Line 13K excess business interest expense.  In past years I created Form 8990 - Schedule A on an Additional Information Form and plugged in the numbers.  You could make a pdf in Excel and attach it to the tax return.  This year one of the partnerships showed excess taxable income, but no excess business interest expense.  Last year this partnership had EBIE but no ETI. The ETI was greater than the carryover EBTE, so I deducted the carryover expense this year.  I put this on line 1 of the K-1 input sheet so it would transfer to Schedule E Page 2.   Example, this K-1 - Line 1 showed 4,000 ordinary business income and the EBIE was 1,500.  In the box on Line 1 I put Per K-1 Income 4,000 less excess business interest expense 1,500 - it netted to 2,500 on Line 1 and carried to Sch. E.  We'll see.

[IntuitPatriciaV13]

Because Form 8990 is not supported in ProSeries, you would need to download the PDF, complete the entries, and attach the form with the client's return. Instructions and PDF can be found here: IRS About Form 8990.

Note that Form 8453 does not list Form 8990 as one of the forms that can be submitted separately from the return.