Limitation on Business Interest Expense 
Form  8990                                         Under Section 163(j)                                                       OMB No. 1545-0123
(Rev. May 2020)                                      ▶ Attach to your tax return.
Department of the Treasury           ▶ Go to www.irs.gov/Form8990 for instructions and the latest information.
Internal Revenue Service
Taxpayer name(s) shown on tax return                                                                          Identification number

If Form 8990 relates to an information return for a foreign entity (for example, Form 5471), enter:
Name of foreign entity ▶
Employer identification number, if any ▶
Reference ID number ▶
Part I Computation of Allowable Business Interest Expense
Part I is completed by all taxpayers subject to section 163(j). Schedule A and Schedule B need to be completed before Part I when the 
taxpayer is a partner or shareholder of a pass-through entity subject to section 163(j).
Section I—Business Interest Expense
1     Current year business interest expense (not including floor plan financing 
      interest expense), before the section 163(j) limitation    . . . . . .     .      .   1
2     Disallowed business interest expense carryforwards from prior years. (Does 
      not apply to a partnership)  .     .   . . . . .    . .    . . . . . .     .      .   2
3     Partner’s excess business interest expense treated as paid or accrued in
      current year (Schedule A, line 44, column (h))  .   . .    . . . . . .     .      .   3
4     Floor plan financing interest expense. See instructions .    . . . . .     .      .   4
5     Total business interest expense. Add lines 1 through 4  .      . . . .     .      . . .  .   . . .      . ▶           5
Section II—Adjusted Taxable Income

                                                            Taxable Income 
6     Taxable income. See instructions   .       . . .    . .    . . . . . .     .      . . .  .   . . .      . .           6
                              Additions (adjustments to be made if amounts are taken into account on line 6)
7     Any item of loss or deduction that is not properly allocable to a trade or 
      business of the taxpayer. See instructions  .  .    . .    . . . . . .     .      .   7
8     Any business interest expense not from a pass-through entity. See instructions        8
9     Amount of any net operating loss deduction under section 172 .     . .     .      .   9
10    Amount of any qualified business income deduction allowed under section
      199A   .  .       .   . . .    . . .   . . . . .    . .    . . . . . .     .      .   10
11    Deduction allowable for depreciation, amortization, or depletion attributable to 
      a trade or business. See instructions .    . . .    . .    . . . . . .     .      .   11
12    Amount  of  any  loss  or  deduction  items  from  a  pass-through  entity.  See 
      instructions .        . . .    . . .   . . . . .    . .    . . . . . .     .      .   12
13    Other additions. See instructions  .     . . . .    . .    . . . . . .     .      .   13
14    Total  current  year  partner’s  excess  taxable  income  (Schedule  A,  line  44, 
      column (f))       .   . . .    . . .   . . . . .    . .    . . . . . .     .      .   14
15    Total  current  year  S  corporation  shareholder’s  excess  taxable  income
      (Schedule B, line 46, column (c))  .     . . . .    . .    . . . . . .     .      .   15
16    Total. Add lines 7 through 15  .       . . . . .    . .    . . . . . .     .      . . .  .   . . .      . ▶           16
                              Reductions (adjustments to be made if amounts are taken into account on line 6)
17    Any item of income or gain that is not properly allocable to a trade or business
      of the taxpayer. See instructions  .     . . . .    . .    . . . . . .     .      .   17 (                          ) 
18    Any business interest income not from a pass-through entity. See instructions         18 (                          ) 
19    Amount  of  any  income  or  gain  items  from  a  pass-through  entity.  See 
      instructions  .       . . .    . . .   . . . . .    . .    . . . . . .     .      .   19 (                          ) 
20    Other reductions. See instructions       . . . .    . .    . . . . . .     .      .   20 (                          ) 
21    Total. Combine lines 17 through 20  .      . . .    . .    . . . . . .     .      . . .  .   . . .      . ▶           21 (                          ) 
22    Adjusted taxable income. Combine lines 6, 16, and 21. (If zero or less, enter -0-.)      .   . . .      . ▶           22
For Paperwork Reduction Act Notice, see the instructions.                  Cat. No. 37814C                                  Form 8990 (Rev. 5-2020)

Form 8990 (Rev. 5-2020)                                                                                                   Page 2
Section III—Business Interest Income
23 Current year business interest income. See instructions        . . . . . .       .   23
24 Excess business interest income from pass-through entities (total of Schedule 
   A, line 44, column (g), and Schedule B, line 46, column (d)) .   . . . . .       .   24
25 Total. Add lines 23 and 24  .    .     . . . . .  . . .        . . . . . .       . .   .    . . . . . ▶      25
Section IV—163(j) Limitation Calculations

                                            Limitation on Business Interest Expense 
26 Multiply adjusted taxable income (line 22) by the applicable percentage. See 
   instructions  .        . . . . . .     . . . . .  . . .        . . . . . .       .   26
27 Business interest income (line 25) .     . . . .  . . .        . . . . . .       .   27
28 Floor plan financing interest expense (line 4)  . . . .        . . . . . .       .   28
29 Total. Add lines 26, 27, and 28 .      . . . . .  . . .        . . . . . .       . .   .    . . . . . ▶      29
                                              Allowable Business Interest Expense
30 Total current year business interest expense deduction. See instructions.          .   .    . . . . . .      30
                                                       Carryforward
31 Disallowed business interest expense. Subtract line 29 from line 5. (If zero or less, enter -0-.)  .  .      31
Part II  Partnership Pass-Through Items
Part II is only completed by a partnership that is subject to section 163(j). The partnership items below are allocated to the partners 
and are not carried forward by the partnership. See the instructions for more information.
                                               Excess Business Interest Expense
32 Excess business interest expense. Enter amount from line 31 .        . . .       . .   .    . . . . . .      32
                          Excess Taxable Income (If you entered an amount on line 32, skip lines 33 through 37.)
33 Subtract the sum of lines 4 and 25 from line 5. (If zero or less, enter -0-.)  . . .   .    . . . . . .      33
34 Subtract line 33 from line 26. (If zero or less, enter -0-.) . . . . . . .       . .   .    . . . . . .      34
35 Divide line 34 by line 26. Enter the result as a decimal. (If line 26 is zero, enter -0-.)  . . . . . .      35       .
36 Excess taxable income. Multiply line 35 by line 22  . .        . . . . . .       . .   .    . . . . . .      36
                                                Excess Business Interest Income
37 Excess business interest income. Subtract the sum of lines 1, 2, and 3 from line 25. (If zero or less, 
   enter -0-.) .        . . . . . . .     . . . . .  . . .        . . . . . .       . .   .    . . . . . .      37
Part III S Corporation Pass-Through Items
Part III is only completed by S corporations that are subject to section 163(j). The S corporation items below are allocated to the shareholders.
See the instructions for more information.
                                                  Excess Taxable Income
38 Subtract the sum of lines 4 and 25 from line 5. (If zero or less, enter -0-.)  . . .   .    . . . . . .      38
39 Subtract line 38 from line 26. (If zero or less, enter -0-.) . . . . . . .       . .   .    . . . . . .      39
40 Divide line 39 by line 26. Enter the result as a decimal. (If line 26 is zero, enter -0-.). . . . . . .      40       .
41 Excess taxable income. Multiply line 40 by line 22  . .        . . . . . .       . .   .    . . . . . .      41
                                                Excess Business Interest Income
42 Excess business interest income. Subtract the sum of lines 1, 2, and 3 from line 25. (If zero or less, 
   enter -0-.) .        . . . . . . .     . . . . .  . . .        . . . . . .       . .   .    . . . . . .      42
                                                                                                                Form 8990 (Rev. 5-2020)

Form 8990 (Rev. 5-2020)                                                                                                                                                                                      Page 3
SCHEDULE A              Summary of Partner’s Section 163(j) Excess Items
Any taxpayer that owns an interest in a partnership subject to section 163(j) should complete Schedule A before completing Part I.
                                                                              Excess Business Interest Expense                      (f) Current year      (g) Current year      (h) Excess business      (i) Current year 
        (a) Name of partnership              (b) EIN               (c) Current          (d) Prior              (e) Total                excess       excess business       interest expense treated excess business interest 
                                                                       year        year carryforward      ((c) plus (d))            taxable income        interest income       as paid or accrued  expense carryforward 
                                                                                                                                                                                (see instructions)       ((e) minus (h))

43

44 Total    . .         . . .   . .   ▶
SCHEDULE B       Summary of S Corporation Shareholder’s Excess Taxable Income and Excess Business Interest Income
Any taxpayer that is required to complete Part I and is a shareholder in an S corporation that has excess taxable income or excess business interest income should complete Schedule B 
before completing Part I.
                                  (a) Name of S corporation                                          (b) EIN                            (c) Current year excess                     (d) Current year excess                     
                                                                                                                                            taxable income                          business interest income
                                                                                                                                                                                
45

46 Total    . .         . . .   . .   . .    . . .   .      .    . .   .    .  . .    . ▶
                                                                                                                                                                                            Form 8990 (Rev. 5-2020)