Form 8990 Limitation on Business Interest Expense Under Section 16

Form

8990

(Rev. December 2022)
Department of the Treasury
Internal Revenue Service

Limitation on Business Interest Expense
Under Section 163(j)

OMB No. 1545-0123

Attach to your tax return.
Go to www.irs.gov/Form8990 for instructions and the latest information.
Taxpayer name(s) shown on tax return

A

B
C
D

Identification number

If Form 8990 relates to an information return for a foreign entity (for example, Form 5471), enter:
Name of foreign entity
Employer identification number, if any
Reference ID number
Is the foreign entity a CFC group member? See instructions . . . . . . . . . . . . . . . . .
Is this Form 8990 filed by the specified group parent for an entire CFC group? See instructions . . . . .
Has a CFC or a CFC group made a safe harbor election? If yes, see instructions for which lines of Form 8990
to complete
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part I

Yes
Yes

No
No

Yes

No

Computation of Allowable Business Interest Expense

Part I is completed by all taxpayers subject to section 163(j). Schedule A and Schedule B need to be completed before Part I when the
taxpayer is a partner or shareholder of a pass-through entity subject to section 163(j).

Section I—Business Interest Expense
1
2
3
4
5

Current year business interest expense (not including floor plan financing interest
expense), before the section 163(j) limitation . . . . . . . . . . . .
Disallowed business interest expense carryforwards from prior years. (Does not
apply to a partnership)
. . . . . . . . . . . . . . . . . .
Partner’s excess business interest expense treated as paid or accrued in current
year (Schedule A, line 44, column (h)) . . . . . . . . . . . . . .
Floor plan financing interest expense. See instructions . . . . . . . .
Total business interest expense. Add lines 1 through 4 . . . . . . . .

1
2
3
4
. .

.

.

.

.

.

5

.

.

.

.

.

.

6

.

16

Section II—Adjusted Taxable Income
Tentative Taxable Income
6

Tentative taxable income. See instructions

.

.

.

.

.

.

.

.

.

.

.

.

.

Additions (adjustments to be made if amounts are taken into account on line 6)
7
8
9
10
11
12
13
14
15
16

Any item of loss or deduction that is not properly allocable to a trade or business
of the taxpayer. See instructions . . . . . . . . . . . . . . .
Any business interest expense not from a pass-through entity. See instructions
Amount of any net operating loss deduction under section 172 . . . . .
Amount of any qualified business income deduction allowed under section 199A
Reserved for future use . . . . . . . . . . . . . . . . . .
Amount of any loss or deduction items from a pass-through entity. See
instructions . . . . . . . . . . . . . . . . . . . . . .
Other additions. See instructions . . . . . . . . . . . . . . .
Total current year partner’s excess taxable income (Schedule A, line 44,
column (f)) . . . . . . . . . . . . . . . . . . . . . .
Total current year S corporation shareholder’s excess taxable income (Schedule
B, line 46, column (c)) . . . . . . . . . . . . . . . . . . .
Total. Add lines 7 through 15 . . . . . . . . . . . . . . . . .

7
8
9
10
11
12
13
14
15
. .

.

.

.

.

Reductions (adjustments to be made if amounts are taken into account on line 6)
17
18
19
20
21
22

Any item of income or gain that is not properly allocable to a trade or business
of the taxpayer. See instructions . . . . . . . . . . . . . . .
Any business interest income not from a pass-through entity. See instructions
Amount of any income or gain items from a pass-through entity. See instructions
Other reductions. See instructions
. . . . . . . . . . . . . .
Total. Combine lines 17 through 20 . . . . . . . . . . . . . . .
Adjusted taxable income. Combine lines 6, 16, and 21. See instructions
. .

For Paperwork Reduction Act Notice, see the instructions.

17
18
19
20
.
.

Cat. No. 37814C

(
(
(
(
.
.

)
)
)
)
.
.

.
.

.
.

.
.

.
.

21 (
22

)

Form 8990 (Rev. 12-2022)

Page 2

Form 8990 (Rev. 12-2022)

Section III—Business Interest Income
23
24
25

Current year business interest income. See instructions .
Excess business interest income from pass-through entities
A, line 44, column (g), and Schedule B, line 46, column (d)) .
Total. Add lines 23 and 24 . . . . . . . . . . .

. .
(total
. .
. .

.
of
.
.

. . .
23
Schedule
. . .
24
. . . . . .

.

.

.

.

.

25

.

.

.

.

.

29

.

.

Section IV—163(j) Limitation Calculations
Limitation on Business Interest Expense
26
27
28
29

Multiply the adjusted taxable income from line 22 by the applicable percentage.
26
See instructions . . . . . . . . . . . . . . . . . . . . .
Business interest income (line 25) . . . . . . . . . . . . . . .
27
Floor plan financing interest expense (line 4) . . . . . . . . . . .
28
Total. Add lines 26, 27, and 28 . . . . . . . . . . . . . . . . . . .
Allowable Business Interest Expense

30

Total current year business interest expense deduction. See instructions .

.

.

.

30

31

Disallowed business interest expense. Subtract line 29 from line 5. (If zero or less, enter -0-.)

.

.

31

.

.

.

Carryforward

Part II

Partnership Pass-Through Items

Part II is only completed by a partnership that is subject to section 163(j). The partnership items below are allocated to the partners
and are not carried forward by the partnership. See the instructions for more information.
Excess Business Interest Expense
32

Excess business interest expense. Enter amount from line 31 .

33
34
35
36

Subtract the sum of lines 4 and 25 from line 5. (If zero or less, enter -0-.) . . . .
Subtract line 33 from line 26. (If zero or less, enter -0-.) . . . . . . . . . .
Divide line 34 by line 26. Enter the result as a decimal. (If line 26 is zero, enter -0-.)
Excess taxable income. Multiply line 35 by line 22 . . . . . . . . . . .

.

.

.

.

.

.

.

.

.

.

.

.

32

Excess Taxable Income (If you entered an amount on line 32, skip lines 33 through 37.)
.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

33
34
35
36

.

Excess Business Interest Income
37

Excess business interest income. Subtract the sum of lines 1, 2, and 3 from line 25. (If zero or less,
enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

S Corporation Pass-Through Items

37

Part III is only completed by S corporations that are subject to section 163(j). The S corporation items below are allocated to the shareholders.
See the instructions for more information.

Excess Taxable Income
38
39
40
41

Subtract the sum of lines 4 and 25 from line 5. (If zero or less, enter -0-.) . . . .
Subtract line 38 from line 26. (If zero or less, enter -0-.) . . . . . . . . . .
Divide line 39 by line 26. Enter the result as a decimal. (If line 26 is zero, enter -0-.) .
Excess taxable income. Multiply line 40 by line 22 . . . . . . . . . . .

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

38
39
40
41

.

Excess Business Interest Income
42

Excess business interest income. Subtract the sum of lines 1, 2, and 3 from line 25. (If zero or less,
enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42
Form 8990 (Rev. 12-2022)

Page 3

Form 8990 (Rev. 12-2022)

SCHEDULE A

Summary of Partner’s Section 163(j) Excess Items

Any taxpayer that owns an interest in a partnership subject to section 163(j) should complete Schedule A before completing Part I.
Excess Business Interest Expense
(a) Name of partnership

(b) EIN

(d) Prior year
carryforward
(see instructions)

(c) Current year
(see instructions)

(e) Total
((c) plus (d))

(f) Current year
excess
taxable income

(g) Current year
excess business
interest income

(h) Excess business
interest expense
treated as
paid or accrued
(see instructions)

(i) Current year
excess business
interest expense
carryforward
(see instructions)

43

44

Total

.

.

SCHEDULE B

.

.

.

.

.

.

Summary of S Corporation Shareholder’s Excess Taxable Income and Excess Business Interest Income

Any taxpayer that is required to complete Part I and is a shareholder in an S corporation that has excess taxable income or excess business interest income should complete Schedule B
before completing Part I.
(a) Name of S corporation

(b) EIN

(c) Current year excess
taxable income

(d) Current year excess
business interest income

45

46

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.
Form 8990 (Rev. 12-2022)