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Screen 8990 - Business Interest Expense Limitation (1120)

General Information

Enter the corporation’s net receipts for the prior three years. If the corporation has been in existence for fewer than three years, enter the net receipts for the years the corporation was in existence.
Enter
X
if this is the first year the corporation is in existence, and net receipts as defined under Temporary Regulation Section 1.448-1T(f)(2)(iv) are greater than $27 million. If the net receipts are greater than $27 million, the corporation does not meet the small business taxpayer exception, and the interest expense may be limited.
Perform the following steps to force the application to calculate taxable income, as well as other amounts for Form 8990. Note if you change, add, or remove any data after performing these steps, you will need to repeat the process to capture the updated information.
  1. Complete all data entry in the return.
  2. Enter
    1
    in the
    Use calculated amounts on Form 8990
    field.
  3. Choose View and then Form or print preview the return.
  4. Enter
    2
    in the
    Use calculated amounts on Form 8990
    field.
Once you complete these steps, the application calculates the following amounts as if the business interest expense was deducted in full: net operating loss; taxable income; depreciation, amortization and depletion; amount of loss; deduction; and income or gain items from a pass-through entity.
When this field is marked, the excess business interest expense from a partnership that is treated as paid or accrued on Form 8990, Schedule A is deducted in full.
Enter
X
 to indicate the S Corporation is a tax shelter. Form 8990 will print if the corporation is not a small business taxpayer or if the corporation is a tax shelter. Form 8990 will also print if the corporation has received excess business interest expense from a partnership.

Taxable Income

Enter the corporation’s taxable income as if the interest expense was allowed in full if you wish to overwrite the system calculated amount. See the field help for the 
Use calculated amounts on Form 8990
for more information.
Include the loss from an excepted trade or business.
Enter the amount of capital loss carryover or carryback included in the taxable income amount entered in the Taxable income field if you wish to overwrite the system calculated amount. See the field help for the
Use calculated amounts on Form 8990
field for more information.
Include the income from an excepted trade or business.
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