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Exceptions for filing Form 8990

Excepted trade or business

Enter data in the Section 1.163(j)-9 election statement window in the Elect screen in the Elections folder to make the election in the current year. If the taxpayer’s only interest expense is from an excepted trade or business, the taxpayer doesn't need to file Form 8990. For more information on types of excepted trades or business, see the Form 8900 instructions.
Enter
X
 if an election under section 1.163(j)-9 was made in the prior year, or if an election is being made in the current year. UltraTax CS proformas
X
 to this field when you enter
1
 in the
Meets criteria for excepted trade or business under Section 163(j)
 field in the prior year.

Small business taxpayer

A small business taxpayer isn't a tax shelter, and has average annual gross receipts, less returns and allowances, from the prior 3 years totaling less than $26 million.
  • Enter the corporation’s prior gross receipts, less returns, and allowances, in the
    Corporation’s net receipts
     fields in the 8990 screen. If the tax year was a short year, enter the number of months in the
    Months in the short year
     field.
  • If the corporation is a member of a controlled group, enter the annualized amounts of gross receipts, less returns and allowances, from all members of the controlled group in the
    Related entities net receipts
     fields. You'll need to aggregate the net receipts for members of a group of businesses under common control. Refer to Form 8990 instructions for other examples where you need to aggregate gross receipts for the gross receipts test
UltraTax CS automatically updates the corporation’s small business net receipt fields, based on the data entered in the
Net receipts
 fields on the History screen when possible.
If the corporation meets the conditions for a small business taxpayer and doesn't receive a 1065 Schedule K-1 with code 13K (Excess business interest expense), the corporation doesn't need to file Form 8990. The interest expense is allowed as a deduction in full.
If a small business taxpayer gets excess business interest expense from a partnership, they need to file Form 8990, and the business interest expense could be limited.

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