Eventually Recouping the Form 8990 Excess Business Interest Expense?

[Drew345]

For an LLC Partnership, I am using Form 8990 to track Excess Business Interest Expense (Schedule K1 line 13 “K"). My question is, how to ever recoup this tracked EBIE?

1. I know that it can be used to offset any future "excess business interest income" or "excess taxable income".
2. I think it can also be used to adjust the basis of the partnership if sold.

But does this loss ever become "allowable" again and folded back into the 1040 as a business loss? (Maybe if the Partnership shows a positive income? It's been a reported loss the first two years.)  This is an LLC Partnership (Real Estate Syndicate), not a PTP Public Traded Partnership.

Any way to ever recoup the EBIE except for the two methods listed above?

Thank you,

Any replies welcome! Not sure I can tag, but # nexchap, and # smarc seem to be the experts, so, thanks for any attention!

[Mike9241 · Accepted solution]

look at form 8990 section IV.  just the two methods you cited or basis adjustment.