IRS · Official form

Form 8990, Limitation on Business Interest Expense Under Section 163(j)

Form 8990 figures how much business interest expense you can deduct this year and how much carries forward under section 163(j). Fill in the official IRS PDF below and download it.

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What is 8990?

Form 8990, Limitation on Business Interest Expense Under Section 163(j), calculates the deduction limit that applies to business interest expense. The limit is generally based on business interest income, a percentage of adjusted taxable income, and floor plan financing interest, and any disallowed interest carries forward to later years.

The form has sections for computing adjusted taxable income, applying the limitation, and, for partnerships and S corporations, allocating excess items to partners and shareholders. Small businesses that meet the gross receipts test are generally exempt; check the current threshold in the instructions at irs.gov.

Who files 8990?

Businesses with interest expense that are subject to the section 163(j) limitation
Partnerships and S corporations that must allocate excess business interest items to owners
Partners and shareholders who receive excess business interest expense from a pass-through
Taxpayers carrying forward disallowed business interest expense from an earlier year

How to fill out 8990

Enter your name and taxpayer identification number, then answer the questions about gross receipts and excepted trades or businesses.
Complete Part I to compute current year business interest expense, including carryforwards from prior years.
Work through the adjusted taxable income section to figure the limitation amount.
If you are a partnership or S corporation, complete the schedules that allocate excess items to partners or shareholders.
Download the finished PDF and attach it to your federal income tax return for the year.

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These are the form's own fields, in the order they appear on the pages. Fill in what you know; anything left blank stays a fillable field in the PDF, so you can finish it in any PDF reader. Nothing you type here is sent to IRS.

Page 1 33 fields

Taxpayer name(s) shown on tax return

Identification number

Name of foreign entity

Employer identification number, if any

Reference ID number

B. Is the foreign entity a C F C group member? See instructions. Yes.

B. No.

C. Is this Form 8990 filed by the specified group parent for an entire C F C group? See instructions. Yes.

C. No.

D. Has a C F C or a C F C group made a safe harbor election? If yes, see instructions for which lines of Form 8990 to complete. Yes.

D. No.

1. Current year business interest expense (not including floor plan financing interest expense), before the section 163(j) limitation.

2. Disallowed business interest expense carryforwards from prior years. (Does not apply to a partnership).

3. Partner’s excess business interest expense treated as paid or accrued in current year (Schedule A, line 44, column (h)).

4. Floor plan financing interest expense. See instructions.

5. Total business interest expense. Add lines 1 through 4.

Section I I—Adjusted Taxable Income. Tentative Taxable Income. 6. Tentative taxable income. See instructions.

7. Any item of loss or deduction that is not properly allocable to a trade or business of the taxpayer. See instructions.

8. Any business interest expense not from a pass-through entity. See instructions.

9. Amount of any net operating loss deduction under section 172.

10. Amount of any qualified business income deduction allowed under section 199A.

11. Deduction allowable for depreciation, amortization, or depletion attributable to a trade or business. See instructions.

12. Amount of any loss or deduction items from a pass-through entity. See instructions.

13. Other additions. See instructions.

14. Total current year partner’s excess taxable income (Schedule A, line 44, column (f)).

15. Total current year S corporation shareholder’s excess taxable income (Schedule B, line 46, column (c)).

16. Total. Add lines 7 through 15.

17. Open parenthesis. Any item of income or gain that is not properly allocable to a trade or business of the taxpayer. See instructions.

18. Open parenthesis. Any business interest income not from a pass-through entity. See instructions. Close parenthesis.

19. Open parenthesis. Amount of any income or gain items from a pass-through entity. See instructions. Close parenthesis.

20. Open parenthesis. Other reductions. See instructions. Close parenthesis.

21. Open parenthesis. Total. Combine lines 17 through 20. Close parenthesis.

22. Adjusted taxable income. Combine lines 6, 16, and 21. See instructions.

Page 2 22 fields

Page 2. Section I I I—Business Interest Income. 23. Current year business interest income. See instructions.

24. Excess business interest income from pass-through entities (total of Schedule A, line 44, column (g), and Schedule B, line 46, column

25. Total. Add lines 23 and 24.

26. Multiply the adjusted taxable income from line 22 by the applicable percentage. See instructions.

27. Business interest income (line 25).

28. Floor plan financing interest expense (line 4).

29. Total. Add lines 26, 27, and 28.

Allowable Business Interest Expense. 30. Total current year business interest expense deduction. See instructions.

Carryforward. 31. Disallowed business interest expense. Subtract line 29 from line 5. (If zero or less, enter 0.).

32. Excess business interest expense. Enter amount from line 31.

33. Subtract the sum of lines 4 and 25 from line 5. (If zero or less, enter 0.).

34. Subtract line 33 from line 26. (If zero or less, enter 0.).

35. Divide line 34 by line 26. Enter the result as a decimal. (If line 26 is zero, enter 0.) Numbers before the decimal.

35. Numbers after the decimal.

36. Excess taxable income. Multiply line 35 by line 22.

37. Excess business interest income. Subtract the sum of lines 1, 2, and 3 from line 25. (If zero or less, enter 0.).

38. Subtract the sum of lines 4 and 25 from line 5. (If zero or less, enter 0.).

39. Subtract line 38 from line 26. (If zero or less, enter 0.).

40. Divide line 39 by line 26. Enter the result as a decimal. (If line 26 is zero, enter 0.) Numbers before the decimal.

40. Numbers after the decimal.

41. Excess taxable income. Multiply line 40 by line 22.

42. Excess business interest income. Subtract the sum of lines 1, 2, and 3 from line 25. (If zero or less, enter 0.).

Page 3 79 fields

43. Row: 1. Column: (a) Name of partnership.

Row: 1. Column: (b) E I N.

Row: 1. Column: Excess Business Interest Expense. (c) Current year (see instructions).

Row: 1. Column: Excess Business Interest Expense. (d) Prior year carryforward (see instructions).

Row: 1. Column: Excess Business Interest Expense. (e) Total ((c) plus (d)).

Row: 1. Column: (f) Current year excess taxable income.

Row: 1. Column: (g) Current year excess business interest income.

Row: 1. Column: (h) Excess business interest expense treated as paid or accrued (see instructions).

Row: 1. Column: (i) Current year excess business interest expense carryforward (see instructions).

Row: 2. Column: (a) Name of partnership.

Row: 2. Column: (b) E I N.

Row: 2. Column: Excess Business Interest Expense. (c) Current year (see instructions).

Row: 2. Column: Excess Business Interest Expense. (d) Prior year carryforward (see instructions).

Row: 2. Column: Excess Business Interest Expense. (e) Total ((c) plus (d)).

Row: 2. Column: (f) Current year excess taxable income.

Row: 2. Column: (g) Current year excess business interest income.

Row: 2. Column: (h) Excess business interest expense treated as paid or accrued (see instructions).

Row: 2. Column: (i) Current year excess business interest expense carryforward (see instructions).

Row: 3. Column: (a) Name of partnership.

Row: 3. Column: (b) E I N.

Row: 3. Column: Excess Business Interest Expense. (c) Current year (see instructions).

Row: 3. Column: Excess Business Interest Expense. (d) Prior year carryforward (see instructions).

Row: 3. Column: Excess Business Interest Expense. (e) Total ((c) plus (d)).

Row: 3. Column: (f) Current year excess taxable income.

Row: 3. Column: (g) Current year excess business interest income.

Row: 3. Column: (h) Excess business interest expense treated as paid or accrued (see instructions).

Row: 3. Column: (i) Current year excess business interest expense carryforward (see instructions).

Row: 4. Column: (a) Name of partnership.

Row: 4. Column: (b) E I N.

Row: 4. Column: Excess Business Interest Expense. (c) Current year (see instructions).

Row: 4. Column: Excess Business Interest Expense. (d) Prior year carryforward (see instructions).

Row: 4. Column: Excess Business Interest Expense. (e) Total ((c) plus (d)).

Row: 4. Column: (f) Current year excess taxable income.

Row: 4. Column: (g) Current year excess business interest income.

Row: 4. Column: (h) Excess business interest expense treated as paid or accrued (see instructions).

Row: 4. Column: (i) Current year excess business interest expense carryforward (see instructions).

Row: 5. Column: (a) Name of partnership.

Row: 5. Column: (b) E I N.

Row: 5. Column: Excess Business Interest Expense. (c) Current year (see instructions).

Row: 5. Column: Excess Business Interest Expense. (d) Prior year carryforward (see instructions).

Row: 5. Column: Excess Business Interest Expense. (e) Total ((c) plus (d)).

Row: 5. Column: (f) Current year excess taxable income.

Row: 5. Column: (g) Current year excess business interest income.

Row: 5. Column: (h) Excess business interest expense treated as paid or accrued (see instructions).

Row: 5. Column: (i) Current year excess business interest expense carryforward (see instructions).

Row: 6. Column: (a) Name of partnership.

Row: 6. Column: (b) E I N.

Row: 6. Column: Excess Business Interest Expense. (c) Current year (see instructions).

Row: 6. Column: Excess Business Interest Expense. (d) Prior year carryforward (see instructions).

Row: 6. Column: Excess Business Interest Expense. (e) Total ((c) plus (d)).

Row: 6. Column: (f) Current year excess taxable income.

Row: 6. Column: (g) Current year excess business interest income.

Row: 6. Column: (h) Excess business interest expense treated as paid or accrued (see instructions).

Row: 6. Column: (i) Current year excess business interest expense carryforward (see instructions).

44. Total. (f) Current year excess taxable income.

44. Total. (g) Current year excess business interest income.

44. Total. (h) Excess business interest expense treated as paid or accrued.

45. Row: 1. Column: (a) Name of S Corporation.

Row: 1. Column: (b) E I N.

Row: 1. Column: (c) Current year excess taxable income.

Row: 1. Column: (d) Current year excess business interest income.

Row: 2. Column: (a) Name of S Corporation.

Row: 2. Column: (b) E I N.

Row: 2. Column: (c) Current year excess taxable income.

Row: 2. Column: (d) Current year excess business interest income.

Row: 3. Column: (a) Name of S Corporation.

Row: 3. Column: (b) E I N.

Row: 3. Column: (c) Current year excess taxable income.

Row: 3. Column: (d) Current year excess business interest income.

Row: 4. Column: (a) Name of S Corporation.

Row: 4. Column: (b) E I N.

Row: 4. Column: (c) Current year excess taxable income.

Row: 4. Column: (d) Current year excess business interest income.

Row: 5. Column: (a) Name of S Corporation.

Row: 5. Column: (b) E I N.

Row: 5. Column: (c) Current year excess taxable income.

Row: 5. Column: (d) Current year excess business interest income.

46. Total. (c) Current year excess taxable income.

46. Total. (d) Current year excess business interest income.

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Frequently asked questions

Do small businesses have to file Form 8990?

Generally no. Taxpayers that meet the gross receipts test are exempt from the section 163(j) limitation and usually do not file, unless they have items like excess business interest expense from a partnership. The dollar threshold is adjusted for inflation, so check the current instructions.

What happens to interest I cannot deduct this year?

Disallowed business interest expense carries forward indefinitely. You include the carryforward on next year’s Form 8990 and deduct it when the limitation allows.

Does Form 8990 apply to personal interest like a home mortgage?

No. It only limits business interest expense. Personal interest, including home mortgage interest claimed on Schedule A, follows separate rules.

Form 8990, Limitation on Business Interest Expense Under Section 163(j)

What is 8990?

Who files 8990?

How to fill out 8990

Quick fill 8990 on this page

Frequently asked questions

Related forms

Form 1120, U.S. Corporation Income Tax Return

Form 1065, U.S. Return of Partnership Income

Form 8991, Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts