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Section 163(j)

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Level 2
last updated ‎April 15, 2020 9:12 AM

I have a client who is a partnership and owns a share in another partnership.  They received a K-1 that has an amount on Line 13 code K..which "excess business interest expense".  When I enter this amount on my clients input pages for K-1input...the amount flows through to Form 8990 Schedule A which is correct.  Since mu client's  partnership shows a loss the excess interest isn't allowed which I understand.  However, reading the directions shouldn't this amount either carryover or be allocated to the partnership on their K1's?  Proconnect is doing neither.  Any help would be appreciated. thanks

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Level 15
last updated ‎April 15, 2020 9:12 AM

What do you want PTO to do?  The excess interest expense disallowed in the current year will be carried over to future years when that same partnership reports excess interest income and excess taxable income.

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Still an AllStar
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Level 2
last updated ‎April 15, 2020 9:12 AM

Shouldn't the system (PTO) show it as a carryover for my taxpayer?

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Level 15
last updated ‎April 15, 2020 9:12 AM

PTO's carryover statement is not the most comprehensive but it does include 163(j) carryover.

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Still an AllStar
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Level 2
last updated ‎April 15, 2020 9:12 AM

That's my problem...it's not showing a carryover at all for section.  I looked at the "General Information" and "carryovers to 2020" shows nothing

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Level 15
last updated ‎April 15, 2020 9:12 AM

Just checked.  It used to work and is still working.  You may like to review your input again.  Otherwise, send your return to Support so that they can look into that particular return for you.

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Still an AllStar
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