You need to get the from from irs.gov/forms. The form is then completed and attached to your 1040 return, and you’ll then have to file your 1040 return by mail. The form and instructions were done late, hopefully TurboTax will support it in next years version.
For this year you are using the form to carry forward your K-1 Line 13 Code K excess business interest expense for deduction in a future year when excess taxable income (Line 20 Code AE) or excess business interest income (Line 20 Code AF) from the then current year FROM THE SAME entity can be used to offset and deduct it. Your tax basis is decreased by that amount this year, but you only get that deduction in a future year. So don’t ignore it or you’ll lose that deduction, or have to file an amended return.
Line 20 AE and AF are only used to calculate if you are limited in your own carry forward deduction by section 163(j). (ie, over $25 million of gross receipts or you own a foreign company). Those amounts are not carried forward, but are used in your three year average to see if you are subject to the section 163(j) limitations. If you’re doing your own taxes, chances are you’re small business taxpayer grossing less than $25 million, and your excess business interest expense is not going to be further reduced.
