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

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/f8990.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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Form

(Rev. December 2025) Department of the Treasury Internal Revenue Service

Attach to your tax return. Go to www.irs.gov/Form8990 for instructions and the latest information.

OMB No. 1545-0123

Attachment Sequence No. 990

Taxpayer name(s) shown on tax return Identification number

A 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 B Is the foreign entity a CFC group member? See instructions . . . . . . . . . . . . . . . . . Yes No C Is this Form 8990 filed by the specified group parent for an entire CFC group? See instructions . . . . . Yes No D Has a CFC or a CFC group made a safe harbor election? If yes, see instructions for which lines of Form 8990 to complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No 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

Section II—Adjusted Taxable Income

Tentative Taxable Income

6 Tentative taxable income. See instructions . . . . . . . . . . . . . . . . . . . 6

Additions (adjustments to be made if amounts are taken into account on line 6)

Reductions (adjustments to be made if amounts are taken into account on line 6)

Form 8990 (Rev. 12-2025) Page 2

Section III—Business Interest Income

Section IV—163(j) Limitation Calculations

Limitation on Business Interest Expense

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. 12-2025)

Form 8990 (Rev. 12-2025) 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.

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.