Drake Tax - Form 8990

Form 8990 is used to calculate the amount of business interest expense that can be deducted as well as the amount to carry forward to the next year. Data entry for Forms 1040, 1120, 1120-S, and 1065 is available on the 8990 screen.

• In Form 1065, also answer Schedule B, questions 23 and 24 on the B screen > Schedule B, cont. tab.

• In Form 1120-S, also answer Schedule B, questions 9 and 10 on the B screen.

When completing screen 8990 in Drake Tax, be sure to read the Important disclaimer at the top of the screen for guidance on entering the data. See the Form 8990 Instructions for details.

Note 654 is produced on any individual, corporate, or tax-exempt return where the business income exceeds $10 million - you should review the return to determine if Form 8990 would be needed.

Small business taxpayers are not subject to the limitations on Form 8990. If the taxpayer falls into this category, they would not be required to file Form 8990. The section on "who must file" indicates that some taxpayers are not subject to filing this form. See the Form 8990 Instructions for further information.