U.S. · Tax forms
Form 8990 line 11, depreciation, amortization and depletion add-back.
The line the 2025 revision reinstated, and why it raises adjusted taxable income.
Line 11 adds back the deduction allowable for depreciation, amortization, or depletion attributable to a trade or business when computing adjusted taxable income. The December 2025 revision of the form reinstated this line: P.L. 119-21 amended section 163(j) to allow the add-back for tax years beginning after 2024. Pass-through entity amounts go on line 12, not here.
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Result
When ATI includes this add-back
| Item | Meaning | What the IRS says |
|---|---|---|
| Before 2022 | Add-back applies | For tax years beginning before 2022 and after 2024, ATI is computed without deductions for depreciation, amortization, depletion, and any other deduction prescribed in published guidance. |
| 2022 through 2024 | No add-back | For tax years 2022 through 2024, ATI includes deductions for depreciation, amortization, or depletion attributable to a trade or business. |
| After 2024 | Add-back applies again | P.L. 119-21 (the One Big Beautiful Bill Act) amended section 163(j) to allow an add-back to taxable income for any deduction allowable for depreciation, amortization, or depletion to determine ATI for tax years beginning after 2024. |
| Line 11 | What to enter | Enter the amounts allowable for depreciation, amortization, or depletion attributable to a trade or business. |
| Pass-through amounts | Use line 12 | Do not include amounts from pass-through entities, which will be entered on line 12. |
| Line 16 | Total additions | Total. Add lines 7 through 15. |
| Line 22 | Adjusted taxable income | Combine lines 6, 16, and 21. |
What changed
The Form 8990 instructions (revised 12/2025) state that Form 8990 line 11 was revised to reinstate the deduction allowable for depreciation, amortization, or depletion attributable to a trade or business as an adjustment to tentative taxable income for purposes of computing ATI. This applies to tax years beginning after 2024. A larger ATI raises the 30% limit on line 26, so more business interest can be deducted.
Earlier years
For tax years 2022 through 2024, the instructions state that ATI includes (is computed with) the deductions for depreciation, amortization, or depletion, so those years had no add-back on this line. For tax years beginning before 2022 the instructions describe the add-back as applying, as it does again after 2024. If you are looking at a prior-year form, check that year’s instructions.
Where the add-back goes
Line 11 is part of the additions on lines 7 through 16, which line 16 totals. Line 22 combines lines 6, 16 and 21, and line 26 applies the 30% applicable percentage to that ATI. The instructions also say that for tax years beginning after 2025, ATI will exclude U.S. shareholder inclusions from controlled foreign corporations.
Worked example
Made-up numbers, simplified. Line 6 tentative taxable income is $400,000 for a 2025 tax year and the business deducted $120,000 of depreciation attributable to its trade or business. Enter $120,000 on line 11. With no other adjustments, ATI on line 22 is $520,000 and the 30% limit on line 26 is $156,000, compared with $120,000 without the add-back.
More line pages in this set
Related lines: Form 8990 Line 6, Form 8990 Line 19, Form 8990 Line 30.
Sources
- Instructions for Form 8990 (12/2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 8990 (Limitation on Business Interest Expense Under Section 163(j)): the printed line wording and arithmetic on the form. Read November 2, 2026.
Instructions for Form 8990, December 2025 revision. The line labels were read from the Form 8990 (Rev. December 2025) PDF the IRS had posted on the date read. Line numbers can shift between years, so check them against the form for your tax year. Examples marked made-up use invented figures; the others reproduce the IRS’s own examples.
Frequently asked questions
What goes on Form 8990 line 11?
The amounts allowable for depreciation, amortization, or depletion attributable to a trade or business, excluding pass-through entity amounts.
Why did line 11 come back?
P.L. 119-21 amended section 163(j) to allow the add-back for tax years beginning after 2024, and the form was revised to reinstate the line.
Did line 11 apply for 2022 through 2024?
For tax years 2022 through 2024, the instructions state that ATI includes the deductions for depreciation, amortization, or depletion, so there was no add-back.
Where do pass-through amounts go?
Amounts from pass-through entities are entered on line 12.
How does line 11 change the interest limit?
It increases ATI on line 22, and line 26 is 30% of ATI.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.