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Does Turbotax support Form 8990? Have K-1 for ptp (mlp) reports Business Interest Exp box 13 code K. Partner instr say Form 8990 must be filed. Using Premier desktop.
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Business & farm
Form 8990's utility for a Personal Form 1040 is probably close to zero if not zero.
The specific question goes to the point that the Taxpayer has received a Schedule K-1(1065) from a PTP/MLP with entries on the K-1 possibly including on Line 13 Code=K Excess business interest expense. Note that entry in TurboTax Personal the support for Schedule K-1(1065) line 13 with Code=K is noted as unsupported. Further note, that the Form 8990 would be filed by the MLP. However, as you can read the following, it is all most likely irrelevant since the excess business interest expense deductibility is severely limited to businesses as described below.
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https://www.irs.gov/forms-pubs/about-form-8990
- The Tax Cuts and Jobs Act (P.L. 115-97) amended section 163(j) to reflect a limitation on the deduction for business interest expense for certain taxpayers in tax years beginning after 2017.
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Background. For tax years beginning after Dec. 31, 2017, for certain taxpayers, the deduction allowed for business interest for any tax year can’t exceed the sum of: (1) the taxpayer’s business interest income for the tax year; (2) 30% of the taxpayer’s adjusted taxable income (ATI) for the tax year; plus (3) the taxpayer’s floor plan financing interest (certain interest paid by vehicle dealers) for the tax year. (Code Sec. 163(j)(1)) Disallowed business interest may be carried forward indefinitely, subject to certain restrictions applicable to partnerships.
In November 2018, IRS issued proposed regs on the new business interest deduction. For coverage of the proposed regs, see here for the rules for C corporations, here for the rules for partnerships and S corporations, here for the small taxpayer exemption and relation to other interest provisions, here for the election for excepted trades or businesses and the REIT safe harbor, and here for the rules for foreign corporations and shareholders and foreign persons with effectively connected income (ECI).
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" This is a K-1 received on my personal tax return vs. an entity return."
None of the TurboTax personal income tax preparation products support Form 8990 (see screenshot).
See generally https://digitalasset.intuit.com/DOCUMENT/A5FP7N8Ic/2018-unsupported-calcs-L1FQfTTgn-1.pdf
If you need the form then, unfortunately, you will have to prepare it manually and then print and mail your return.
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If the amounts in the K-1 Line 20 are AE or AF, excess taxable income or excess taxable business interest income, and you have less than $25 million in AGI plus any carryovers, you could probably get away with not filing the form this year.
The partnership you got the K-1 had the deduction limited, but it is passed on to the partner to carry forward. The partnership doesn’t get to carry it forward. You are only limited on the deduction if you are subject to section 163(j) yourself. Otherwise you get the full deduction, in a later year.
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Form 8990 is supported and available in TurboTax Business. See the following IRS Forms Availability Table for TurboTax Business
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TurboTax still does not support Form 8990 in 2022 edition for individuals who are partners. However TaxAct (a competing product) does support it, and has for several years: https://www.taxact.com/individual-taxes/online/premier