Instructions For Schedule O (Form 1120) - 2012 (Page 9 of 9) in pdf

from such component member's

purposes of apportioning the amounts

proportions, as the AMT exemption

income tax return.

included in column (e) and, except as

amount was apportioned in Column

provided elsewhere in the Internal

(c). If the combined AMTI of the

Part III. Income Tax

Revenue Code, in column (f),

members of the group is at least

Apportionment

determine the component members of

$310,000, the corporation is not

a brother-sister controlled group using

required to complete columns (c) and

Column (b). Multiply the taxable

both the 50% and 80% tests as

(d) of Part IV, since the exemption

income amount in Part II, column (c)

provided in section 1563(f)(5). See

amount is fully phased out at

by 15% (0.15) and enter the result

Brother-sister group, earlier.

$310,000. See Allocation of AMT

here.

Exemption Amount and the Reduction

Column (a). If a corporation qualifies

of the AMT Exemption Amount,

Column (c). Multiply the taxable

as a component member of a

earlier.

income amount in Part II, column (d)

brother-sister controlled group, solely

by 25% (0.25) and enter the result

because it satisfies only the 50%

Column (e). For purposes of

here.

ownership affiliation test, insert the

determining whether the component

notation “(50)” after that corporation's

members of a controlled group are

Column (d). Multiply the taxable

name. If a corporation is a component

subject to a penalty for failure to pay

income amount in Part II, column (e)

member of that group because it

the correct amount of estimated tax

by 34% (0.34) and enter the result

satisfies both the 50% and 80%

under section 6655(g), those

here.

ownership affiliation tests, no notation

component members of a controlled

Column (e). Multiply the taxable

is necessary.

group must combine their taxable

income amount in Part II, column (f)

incomes for their tax years that were

Column (b). The component

by 35% (0.35) and enter the result

subject to the same December 31

members of a controlled group may

here.

testing date. If that amount is at least

allocate the $250,000 accumulated

$1 million for any tax year during the

Column (f) and (g). A corporation's

earnings credit unequally if they adopt

testing period (as defined in section

share of any additional taxes liability

an apportionment plan or have an

6655(g)(2)(B)(i)), those members

imposed by section 11(b)(1) is

apportionment plan in effect.

must then divide that $1 million

determined as explained in

amount equally unless they have an

Determining the amount of additional

Note. If any component member of a

apportionment plan in effect.

taxes, earlier.

controlled group is the type of service

corporation described in section

Column (f). Enter each component

Column (h). Enter here the total

535(c)(2)(B), the amount to be

member's share of any other

apportioned income tax for each

apportioned among the component

tax-benefit items not included in

component member. Combine all the

members is $150,000 (rather than

columns (b) through (e). Provide the

amounts of apportioned tax of each

$250,000).

applicable Internal Revenue Code

such member, as shown in columns

section followed by the amount

(b) through (g).

Column (c). The component

apportioned to that member.

members of a controlled group may

Part IV. Other

allocate the $40,000 AMT exemption

Note. Do not include on Schedule O

Apportionments

amount unequally if they adopt an

an apportionment among the

apportionment plan or have an

component members of any

Brother-sister controlled group.

apportionment plan in effect.

deduction for certain depreciable

For purposes of apportioning the

Column (d). The component

amounts included in columns (b)

property for which a section 179

members of a controlled group must

expense election has been made.

through (d), determine the component

apportion the reduction to the AMT

Report this apportionment as required

members of a brother-sister controlled

exemption amount to the same

group, using only the 50% test as

under section 179. See Regulations

corporations, and in the same

section 1.179-2(b)(7).

provided in section 1563(a)(2). For

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Instructions For Schedule O (Form 1120) - 2012 Page 9

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