Business & farm
Steve, thanks for taking time to write abt it. You are a lifesaver.
Only problem is that your response is totally different than what I had initially thought and filled 8990, that was ready to sent to IRS. Happy that I got your input before I mailed.
So, pls bear with me and guide thru this one more time. Appreciate your help again.
My case:
I am Individual Tax filer (1040, way less than 25 Mil, so 163j doesn't apply to me) and have 3 K1's that need to be brought into this 8990 context
1. First K1 (REIT - passive investment) - having a 13K (Excess Business Interest Expense of $100), triggering the need to do this 8990 form.
2. Second & a Third K1 (PTP MLP each) - and each has 20AE of $100 (Excess Taxable Income - Total of $200)
3. Let's assume my 1040 11b - Taxable Income is 99.8K (so it rounds off with above $200 (Taxable Income), to 100K)
I have constructed Schedule A as shown below.
Based on what you said I have filled
Can you pls let me know if it looks ok.
Only concern:
* In Part 1: I don't have the 'Excess Business Interest Expense' listed anywhere (not even line 3, as I am not sure when EBIE is treated as paid or accrued). Thats why I have Schedule A's 43-h as 0 as well.
* Does Line 30 and 31 look ok. Should line 30 have current year's EBIE
* After doing 8990 form, should any deduction happen to Taxable Income (in 1040) - I assume not, meaning, even though it's allowed without being subject to 163j, we cannot take it as there is no 20 AE/20AF from that partnership.
Again, thank you so much for looking into this. I wish TT supported this for individual filers. Hopefully, this generic example with screenshot will help many people. Appreciate your time to help everyone here.
Thanks
Richard
