I am "married filing jointly" and receive a K-1 for a company I used to work at and still have equity in. That K-1 has info that requires me to complete the form 8990.
TT doesn't support Form 8990, so I complete it offline. However, I can't find any instructions from the IRS or other sources that indicates where Row 30 on the 8990 goes next.
Any idea where it goes next? Does it just live on the 8990 as some sort of informational item or does it flow through to the 1040 somehow?
It depends. The following information about the business interest deduction and the limitations are show for you below. Any allowed amount will be used on Schedule A, if the amount is from your partnership K1. See the instructions linked below.
IRS FAQs for What are the limitations of 163j?
A1. Generally, taxpayers can deduct interest expense paid or accrued in the taxable year. However, if the section 163(j) limitation applies, the amount of deductible business interest expense in a taxable year cannot exceed the sum of:
Under the CARES Act, a different percentage (50%) of ATI may apply for taxable years beginning in 2019 and 2020. See the CARES Act, discussed later, and Revenue Procedure 2020-22 PDF, for ATI elections and special rules for partnership.
Thank you for the feedback, Diane. Are you referring to Line 16 of Schedule A? I didn't see any other line that looked applicable, but the Line 16 instructions list certain allowable deductions that don't include one for the business interest deduction from 8990 line 30. Perhaps I'm just not tracking still.
https://www.irs.gov/instructions/i1040sca#en_US_2024_publink53061xd0e1075
No, it should go on line 9 of your Schedule A. You can find this using the steps below and enter your investment interest expense.