Page 186 - Large Business IRS Training Guides

S Corporations

• The IRC § 163(j) limitation is applied at the S corporation

level. The S corporation prepares a Form 8990, if

required.

• The small business exemption can apply at the

S corporation level.

• S corporations subject to IRC § 163(j) can elect into the

real property trade or business or farming business

exceptions, if applicable.

• Disallowed BIE is carried over by the S corporation and is

treated as business interest expense paid or accrued in

the following year.

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