Hi Richard,
You're correct on most of it. Part 1 of the 8990 is going to current year business interest expense from all K-1's from this year, disallowed carry-forwards, and the amounts that are excess business interest expense this year. Similarly, the additions and reductions sections will add excess taxable income from any K-1. Those sections are how they look at your income to see if combining all of those makes you subject to the Section 163(j) limitations, and thus potentially further limiting your deductions. Since you're doing your own taxes, and it's not team of accountants asking the question, you're likely not making $25 million-ish and not going to be affected.
So for you, the important section is Schedule A for Partnerships, or B for S Corporations. You don't need a separate sheet for each K-1, in fact you really don't want that, because the totals from the columns feed in to the numbers they are looking for in Part 1. The ONLY number that carries forward is going to be excess business interest expense, and it carries forward until it can be deducted by the entries from that same entity in a future year.
So direct to some questions you had: Part 1 Item 14 would have the amounts from your K-1's that had excess taxable income. You won't have a K-1 with both excess taxable income, and excess business interest expense, because it would be deducted in that year. These amounts are used in the calculation to see if your current year business interest deduction will be further limited.
Line 31 would be zero most likely, unless you made a **bleep** ton of money. In that case, tell your accountants to figure out the form!
So if this is your first year with a reported Line 13K Excess Business Interest expense your carryforward amount for Part 1 line 2 is zero. For Line 31 it's also zero (again caveat above) and your carry forward to next year will be the amount on your K-1 with Line 13k. That amount will be carried forward, and maybe added to in future years, until it can be offset by excess taxable income or excess business interest income from the SAME K-1 entity with Line 13K entry.
Steve
