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Consolidation

Disallowed business interest expense carryover allocation for consolidated returns

Allocation of member disallowed business interest expense are available for consolidated returns. The statements print with the return's Not Required Statements for Form 8990. They are titled
“Form 8990, Page 1, Part I, Section I - Consolidated Disallowed Business Interest CO - Allocation of Utilized Amounts”
 and
“Form 8990, Page 1, Part I, Section I - Consolidated Disallowed Business Interest CO - Allocation of Utilized Amounts”
. The following table is a summary of the columns contained in each statement.
Form 8990, Page 1, Part I, Section I - Consolidated Disallowed Business Interest CO - Allocation of Utilized Amounts
Column heading
Information in column
Taxable Year
The prior year to which the disallowed business interest was incurred by the member.
Corporation Name
The name of the consolidated corporation or the member corporation name associated to the disallowed business interest.
Total Prior year Disallowed Business Interest Expense
The consolidated member’s total disallowed business interest expense before any prior year allowed amounts. This information is used to allocate the member’s disallowed business interest expense carryover in the consolidated client. This amount should equal the member’s form 8990, page 1, line 1 amount for the year of the carryover.
Member Allocation Percentage
The calculated allocation percentage determined by dividing the member’s business interest expense by the total consolidated business interest expense.
Prior Year Utilized
The member’s total business interest allowed in the prior year.
Carryover Available for Current Year
The member’s amount of prior year disallowed business interest expense carried over to the current year.
Current Year Utilized
The amount allowed in the current year to offset the member’s carryover of business interest expense.
note
The amounts listed are allocated to members based on the allocation ratio.
Form 8990, Page 1, Part I, Section I - Consolidated Disallowed Business Interest CO - Allocation of Utilized Amounts
The amount of any disallowed business interest remaining to be carried over to the next year.
note
These amounts should be entered in the member returns on the NOL Screen in the statement attached to “Consolidated group business interest expense” in the column “Carryover Available for Current Year” after the clients are proforma’d to the next year.
CY Allocation of NOL Utilized and Income Offset
Column heading
Information in column
Taxable Year
The current taxable year.
Corporation Name
The name of the consolidated corporation or the member corporation name associated to the disallowed business interest.
Current Year Floor Plan Interest
This is the member’s current year floor plan interest amount from form 8990, page 1, line 4.
Current Year Business Interest Expense
This is the member’s current year business interest expense from form 8990, page 1, line 1.
Consolidated Total Business Interest Expense
The total amount of consolidated business interest expense.
Member Allocation Percent
This is the member’s allocation percentage based on the member’s business interest expense divided by the total consolidated business interest excluding floor plan interest.
Consolidated Deductible Business Interest Expense
This is the total consolidated amount of the current year allowed business interest less any amount used to offset prior year carryover of business interest expense.
CY Deductible Business Interest Expense
This is the allocated amount of the member’s current year business interest expense allowed.
Disallowed Business Interest Expense CO
This is the allocated amount of the member’s current year business interest expense disallowed. These amounts should be entered in the member returns on Screen NOL in the statement attached to “Consolidated group business interest expense” in the column “Carryover Available for Current Year” after the clients are proforma’d to the next year.

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