UltraTax CS
New (tax) year, new help!
Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
Question
How should the Section 1.163(j)-9 election was made for an excepted trade or business field be answered?
Answer
This field is found on each of the activity screens, including Screen 1120. The field on Screen 1120 pertains to the income reported on Page 1 of the corporate return.
A taxpayer engaged in a real property trade or business or a farming business may elect not to limit business interest expense under section 163(j) for that trade or business. Enter data in the Section 1.163(j)-9 election statement dialog in Screen Elect in the Elections folder to make the election in the current year, The election is irrevocable, and you are required to use the alternative depreciation system (ADS) for certain types of property.
Enter X (if the corporation has made an election under section 1.163(j)-9 in the prior year, or is making the election in the current year. UltraTax CS proformas this field from the prior year.
The business interest expense from activities that have elected not to limit business interest expense will not be included on Form 8990, line 1. If all activities have elected not to limit business interest expense, Form 8990 will not print unless there is excess business interest expense, excess taxable income, or excess business interest income from a pass-through entity.
Question
How should the Section 1.163(j)-9 election was made for an excepted trade or business field be answered?
Answer
This field is found on each of the activity screens, including Screen 1120. The field on Screen 1120 pertains to the income reported on Page 1 of the corporate return.
A taxpayer engaged in a real property trade or business or a farming business may elect not to limit business interest expense under section 163(j) for that trade or business. Enter data in the Section 1.163(j)-9 election statement dialog in Screen Elect in the Elections folder to make the election in the current year, The election is irrevocable, and you are required to use the alternative depreciation system (ADS) for certain types of property.
Enter X (if the corporation has made an election under section 1.163(j)-9 in the prior year, or is making the election in the current year. UltraTax CS proformas X to this field when a 1 was entered in the Meets criteria for excepted trade or business under Section 163(j) field in the prior year.
The business interest expense from activities that have elected not to limit business interest expense will not be included on Form 8990, line 1. If all activities have elected not to limit business interest expense, Form 8990 will not print unless there is excess business interest expense, excess taxable income, or excess business interest income from a pass-through entity.
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