HI,
sorry I didn't see this until today!
In Part 1 line 1 you'll take any other business interest expense you have reported on your other K-1's, if you don't have any, then that line will be zero. If you have any carry forwards from last years Form 8990, those go on line 2, and the current year excess business interest goes on Line 3. Add those up on Line 5.
Line 6 is your Adjusted Taxable Income (Line 11b on your 1040).
In additions they want any excess taxable income from your other K-1's, again, if you don't have any, or any of the other additions, this will all be zero. Same for reductions.
Then when you get to Line 20 you're just taking 30% of your taxable income, and seeing if the current year business interest expense deduction exceeds that amount, where it would be further limited. Most likely, it's not.
All of these other entries you're asking about usually feed in from other K-1's. For example, one K-1 may have excess taxable income, but won't reporting any excess business interest expense (otherwise, it would be deducted in the current year). So in your case with one K-1, you'll carryforward the excess business interest expense until a year when THAT entity has excess taxable interest that it can be deducted against.
Steve
