Instructions For Schedule O (Form 1120) - 2008 Page 4
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4and the additional 3% tax. If an
use both the 50% and 80% tests as
Columns (c) and (d). In applying
additional tax applies, each member
provided in section 1563(f)(5). See
the $40,000 AMT exemption amount,
will pay that tax based on the part of
Brother-sister group on page 1 of
the alternative minimum taxable
the amount used in each taxable
these instructions.
income of all component members
income bracket to reduce that
shall be taken into account. Any
Column (a). If a component
member’s tax. See section 1561(a).
decrease in the exemption amount
member is a member of a
shall be allocated to the component
Column (f). If the taxable income of
brother-sister controlled group solely
members of the group in the same
the controlled group exceeds
because it satisfies the 50% control
manner as the exemption amount
$100,000, enter each member’s
test, then after such member’s name
was allocated to the members. See
share of the smaller of: 5% of the
add the notation “(50).” If a
sections 55(d)(2) and 1561(a).
taxable income in excess of
component member is a member of
$100,000, or $11,750.
the group because it satisfies both
Column (e). Members of a
the 50% and 80% control tests, then
controlled group that are large
Column (g). If the taxable income of
after such member’s name add the
corporations, as defined in section
the controlled group exceeds $15
notation “(80).”
6655(g)(2), must divide the $1 million
million, enter each member’s share of
amount among themselves under the
the smaller of: 3% of the taxable
Column (b). The component
rules of section 1561.
income in excess of $15 million, or
members of a controlled group of
$100,000.
corporations may allocate the
Column (f). Enter each member’s
$250,000 accumulated earnings
share of any other tax benefits not
Part IV. Other
credit unequally if they adopt an
included in columns (b) through (e).
apportionment plan or have an
Do not include the apportionment of
Apportionments
apportionment plan in effect.
the election to expense certain
depreciable property on this
Brother-sister controlled group. In
If any component member of the
schedule. Rather, report the
allocating the apportionments
controlled group is a corporation
apportionment as required under
described in columns (b) through (d)
described in section 535(c)(2)(B), the
section 179. See Regulations section
for a brother-sister controlled group,
amount to be apportioned among the
1.179-2(b)(7).
use only the 50% controlled test as
component members is $150,000
provided in section 1563(a)(2). For
(rather than $250,000). See section
the apportionment described in
1561(a)(2).
column (e) and in general any
apportionment allocated in column (f),
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