1065-US: Excepted trade or business under Section 163(j) (FAQ)

Alerts and notices

Question

How should the Meets criteria for an excepted trade or business under Section 163(j) field be answered?

Answer

This field is asking whether the activity meets the excepted trade or business criteria in the calculation of Form 8990, Limitation on Business Interest Expense Under Section 163(j). It is found on each of the activity screens: Screen Inc, Screen F, Screen 4835, and Screen Rent.

Enter 2 (No) if the income is not from an excepted trade or business per page 2 of the Form 8990 instructions. The income will be included on Form 8990 and the form will print with the return.

Enter 1 (Yes) if the activity is an excepted trade or business and is therefore exempt from being included on Form 8990. The form will not print if you select Yes for this field for every activity in the return, however you may need to enter additional data about the election if the excepted trade or business includes:

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