DavidD66
Expert Alumni

Business & farm

If there was no additional information reported in the K-1 statements, I believe the way you have filled out the form is correct.  If they reported any "Current Year Excess Taxable Income", you would enter that in column f of Schedule A.  You might want to go through the Instructions for Form 8990

 

You don't report this on your tax return, but you have to reduce your basis in Plains All American Pipeline (but not before zero) by the amount of the excess business interest.  This could affect non-taxable distributions deemed a return of basis.  If you dispose of your interest in the partnership, you add back to your basis any unused excess interest expense.    

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