Section I—Business Interest Expense (Lines 1 Through 5)

Line 1. Current year business interest expense. Enter the business interest expense including elective capitalized interest (not including floor plan financing interest expense or disallowed business interest expense carryforwards from prior years) that would have been deductible in the current year without the application of section 163(j).

For C corporations with an interest in a partnership, any investment interest expense allocated to the C corporation is treated as business interest expense of the C corporation from a non-excepted trade or business.

Line 2. Disallowed business interest expense carry- forwards from prior years. Enter the prior year disallowed business interest expense carryover. See Form 8990, line 31, for prior year amount. For consolidated groups with members joining or leaving the group, see Regulations section 1.163(j)-5, as limitations may apply.

Caution: Line 2 does not apply to partnerships. If Form 8990 is being completed for an applicable CFC with a functional currency other than the U.S. dollar, and the amount reported on line 2 is different from the amount reported on line 31 of the prior year Form 8990 due to the use of different translation rates for translating from functional currency to U.S. dollars in different years, attach a statement providing the amount of the disallowed business interest expense carryover in functional currency and the translation rate used in the current year and the prior year. In the case of a CFC group member, a single

Interest expense from an excepted trade or business should not be included.

See Ownership of pass-through entities not subject to the section 163(j) limitation , earlier.

Do not include interest expense allocated by a trading partnership to a partner that does not materially participate. See Trading partnerships , earlier.

Line 2. Disallowed business interest expense carry- forwards from prior years. Enter the prior year disallowed business interest expense carryover. See Form 8990, line 31, for prior year amount. For consolidated groups with members joining or leaving the group, see Regulations section 1.163(j)-5, as limitations may apply.

Instructions for Form 8990 (Rev. 12-2025) 9

statement may be attached to the CFC group’s Form 8990 for all CFC group members in lieu of separate statements for each CFC group member.

Line 4. Floor plan financing interest expense. Enter the current year floor plan financing interest expense.