Instructions For Form 5227 (Page 7 of 12) in pdf

b. The excess of the net long-term capital gain over

Attached Schedule

the net short-term capital loss for that year is, to the

1. In the required schedule, report each loan

extent not deemed distributed, a long-term capital gain

separately, even if more than one loan was made to the

carryover to the next tax year.

same person, or the same terms apply to all loans made.

Salary advances and other advances for personal use

Part IV—Balance Sheet

and benefit, and receivables subject to special terms or

arising from transactions not functionally related to the

Complete the balance sheet using the accounting

trust’s charitable purposes must be reported as separate

method the trust uses in keeping its books and records.

loans for each officer, director, etc.

All filers must complete columns (a) and (b). All unitrusts

2. Receivables that are subject to the same terms and

must also complete column (c).

conditions (including credit limits and rate of interest) as

Enter the end-of-year book value where space is

receivables due from the general public and that arose in

provided to the left of column (a) to report receivables

connection with an activity functionally related to the

and the related allowance for doubtful accounts or

trust’s charitable purposes may be reported as a single

depreciable assets and accumulated depreciation. Enter

total for all the officers, directors, etc. Travel advances

the net amounts in column (b).

made in connection with official business of the trust may

also be reported as a single total.

Column (c)

In computing the net fair market value (FMV) of the

For each outstanding loan or other receivable that

unitrust’s assets, take into account all assets and

must be reported separately, the attached schedule

liabilities without regard to whether particular items are

should show the following information. Use columnar

taken into account in determining the income of the trust.

format:

•

The net FMV of the trust’s assets may be determined on

Borrower’s name and title.

•

any one date during the taxable year of the trust, or by

Original amount.

•

taking the average of valuations made on more than one

Balance due.

•

date during the tax year of the trust, so long as the same

Date of note.

•

valuation date or dates and valuation methods are used

Maturity date.

•

each year. See Regulations section 1.664-3.

Repayment terms.

•

Interest rate.

Line 25—Cash—Non-Interest-Bearing

•

Security provided by the borrower.

•

Enter the amount of cash on deposit in checking

Purpose of the loan.

•

accounts, deposits in transit, change funds, petty cash

Description and FMV of the consideration furnished by

funds, or any other non-interest-bearing account. Do not

the lender.

include advances to employees or officers or refundable

The above detail is not required for receivables or

deposits paid to suppliers or others.

travel advances that may be reported as a single total

Line 26—Savings and Temporary Cash

(see instruction 2 above). However, report and identify

those totals separately in the attachment.

Investments

Enter the total of cash in savings or other interest-bearing

Line 29—Other Notes and Loans Receivable

accounts and temporary cash investments, such as

Enter the combined total of notes receivable and net

money market funds, commercial paper, certificates of

loans receivable.

deposit, and U.S. Treasury bills or other governmental

obligations that mature in less than one year.

Notes receivable. Enter the amount of all notes

receivable not listed on line 28 and not acquired as

Line 27—Accounts Receivable

investments. Attach a schedule similar to that called for in

Enter the total accounts receivable (reduced by the

the line 28 instructions. The schedule should also identify

corresponding allowance for doubtful accounts) that

the relationship of the borrower to any officer, director,

arose from the sale of goods and/or the performance of

trustee, or other disqualified person.

services. Claims against vendors or refundable deposits

For a note receivable from any section 501(c)(3)

with suppliers or others may be reported here if not

organization, list only the name of the borrower and the

significant in amount. (Otherwise, report them on line 36,

balance due on the required schedule.

Other Assets.) Any receivables due from officers,

directors, trustees, foundation managers, or other

Loans receivable. Enter the gross amount of loans

disqualified persons must be reported on line 28.

receivable, less the allowance for doubtful accounts,

Receivables (including loans and advances) due from

arising from the normal activities of the trust. An itemized

other employees should be reported on line 36.

list of these loans is not required, but attach a schedule

indicating the total amount of each type of loan

Line 28—Receivables Due From Officers,

outstanding. Report loans to officers, directors, trustees,

Directors, Trustees, and Other Disqualified

or other disqualified persons on line 28, and loans to

Persons

other employees on line 36.

Enter here (and in an attached schedule described

Line 30—Inventories for Sale or Use

below) all receivables due from officers, directors,

trustees, and other disqualified persons and all secured

Enter the amount of materials, goods, and supplies

and unsecured loans (including advances) to such

purchased or manufactured by the trust and held for sale

persons.

or use in some future period.

-7-

Instructions For Form 5227 Page 7

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