Instructions for IRS Form 8990 Limitation on Business Interest Expense Under Section 163(J)

IRS Form 8990 Limitation on Business Interest Expense

This document contains official instructions for IRS Form 8990 , Limitation on Business Interest Expense Under Section 163(J) - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8990 is available for download through this link.

FAQ

Q: What is IRS Form 8990?A: IRS Form 8990 is a form used to calculate the limitation on business interest expense under Section 163(j) of the tax code.

Q: What is the purpose of Form 8990?A: The purpose of Form 8990 is to calculate the limitation on the amount of business interest expense that can be deducted for tax purposes.

Q: What is the limitation on business interest expense?A: The limitation on business interest expense is the amount of deductible interest expense that is subject to certain restrictions under Section 163(j) of the tax code.

Q: Who needs to file Form 8990?A: Taxpayers who have business interest expense and are subject to the limitation rules under Section 163(j) need to file Form 8990.

Q: What is Section 163(j) of the tax code?A: Section 163(j) of the tax code is a provision that limits the deduction for business interest expense for certain taxpayers.

Q: What information do I need to fill out Form 8990?A: To fill out Form 8990, you will need information about your business interest expense, adjusted taxable income, and other relevant financial data.

Q: When is the deadline to file Form 8990?A: The deadline to file Form 8990 is typically the same as the deadline for filing your federal tax return, which is usually April 15th.

Q: Can I file Form 8990 electronically?A: Yes, you can file Form 8990 electronically using IRS e-file or through a tax preparation software.

Q: What happens if I fail to file Form 8990?A: If you fail to file Form 8990 when required, you may be subject to penalties and interest on any underreported tax liabilities.