Looking for a Form 990-c Templates? Download it for free!

stock of the foreign corporation by vote

that are received from RICs that are not

6. Enter the smaller of line 4 or line

5. If line 5 is greater than line 4,

and value.

subject to the 70% deduction.

stop here; enter the amount

2. Dividends from tax-exempt

Also include dividends received from

from line 6 on line 9, column (c).

organizations.

a less-than-20%-owned FSC that:

•

Do not complete the rest of this

3. Dividends (other than capital gain

Are attributable to income treated as

worksheet . . . . . . . . . . . . . .

dividends) received from a REIT that, for

effectively connected with the conduct of

7. Enter the total amount of

the tax year of the trust in which the

a trade or business within the United

dividends received from

dividends are paid, qualifies under

States (excluding foreign trade income)

20%-or-more-owned

sections 856 through 860.

and

corporations that are included

•

4. Dividends not eligible for a

Qualify for the 70% deduction provided

on lines 2, 3, 5, 7, and 8,

dividends-received deduction because of

in section 245(c)(1)(B).

column (a) . . . . . . . . . . . . . .

the holding period of the stock or an

8. Subtract line 7 from line 3 . . . .

Line 7, Column (a). Enter the

obligation to make corresponding

9. Multiply line 8 by 70% . . . . . . .

U.S. – source portion of dividends that are

payments with respect to similar stock.

10. Subtract line 5 from line 9,

received from 20%-or-more-owned

column (c) . . . . . . . . . . . . . .

Two situations in which the

foreign corporations and that qualify for

11. Enter the smaller of line 9 or line

dividends-received deduction will not be

the 80% deduction under section 245(a).

10 . . . . . . . . . . . . . . . . . . . .

allowed on any share of stock are:

•

Also include dividends received from a

12. Dividends-received deduction

If the cooperative held it for less

20%-or-more-owned FSC that:

after limitation (section

than 46 days during the 90-day period

•

Are attributable to income treated as

246(b)). Add lines 6 and 11.

beginning 45 days before the stock

effectively connected with the conduct of

Enter the result here and on line

became ex-dividend with respect to the

a trade or business within the United

9, column (c) . . . . . . . . . . . . .

dividend (see section 246(c)(1)(A)) or

•

States (excluding foreign trade income)

To the extent the cooperative is

Line 10, Column (a). Enter dividends

and

under an obligation to make related

•

from FSCs that are attributable to foreign

Qualify for the 80% deduction provided

payments for substantially similar or

trade income and that are eligible for the

in section 245(c)(1)(B).

related property.

100% deduction provided in section

5. Any other taxable dividend income

Line 8, Column (a). Enter dividends that

245(c)(1)(A).

not properly reported above (including

are received from wholly owned foreign

Line 11, Columns (a) and (c). Enter only

distributions under section 936(h)(4)).

subsidiaries and that are eligible for the

those dividends that qualify under section

100% deduction provided in section

243(b) for the 100% dividends-received

245(b).

deduction described in section 243(a)(3).

Schedule H

Cooperatives taking this deduction are

In general, the deduction under section

subject to the provisions of section 1561.

245(b) applies to dividends paid out of the

Deductions and Adjustments

earnings and profits of a foreign

The 100% deduction does not apply to

Under Section 1382

corporation for a tax year during which:

affiliated group members that are joining

•

If the cooperative sells qualifying foreign

All of its outstanding stock is owned

in the filing of a consolidated return.

trade property, no deduction is allowed for

(directly or indirectly) by the domestic

Line 12, Column (a). Enter foreign

patronage dividends, per-unit retain

cooperative receiving the dividends and

•

dividends not reportable on lines 3, 6, 7,

allocations, and nonpatronage

All of its gross income from all sources

8, or 10 of column (a). Include on line 12

distributions. For details, see section

is effectively connected with the conduct

the cooperative’s share of the ordinary

941(b)(2).

of a trade or business within the United

earnings of a qualified electing fund from

Any patronage dividends or per-unit

States.

Form 8621, Return by a Shareholder of a

retain allocations that are allocated to

Line 9, Column (c) — Limitation on

Passive Foreign Investment Company or

qualifying foreign trade income of the

dividends-received deduction.

Qualified Electing Fund, line 6c.

cooperative may be treated as qualifying

Generally, line 9, column (c), may not

foreign trade income of the patron. In

Line 13, Column (a). Include income

exceed the amount from the worksheet

order to qualify, the amount must be

constructively received from controlled

below. However, in a year in which an

designated by the cooperative in a written

foreign corporations under subpart F. This

NOL occurs, this limitation does not apply

notice mailed to its patrons not later than

amount should equal the total of amounts

even if the loss is created by the

the 15th day of the 9th month following

reported on Schedule I, Form 5471.

dividends-received deduction. See

the close of the tax year. For more

Line 14, Column (a). Include gross-up

sections 172(d) and 246(b).

details, see section 943(g).

for taxes deemed paid under sections 902

Cooperatives may, under section

and 960.

1388(j)(1), use losses from one or more

Worksheet for Schedule C, line 9

Line 15, Column (a). Enter taxable

allocation units to offset earnings of one

(keep for your records)

distributions from an IC-DISC or former

or more other allocations, as permitted by

DISC that are designated as not eligible

their bylaws, but only to the extent that

1. Refigure line 28, page 1, Form

for a dividends-received deduction.

the earnings and losses are from

990-C, without any adjustment

business done with or for patrons. If a

No deduction is allowed under section

under section 1059 and without

cooperative exercises this option, it must

243 for a dividend from an IC-DISC or

any capital loss carryback to the

provide the information specified in

former DISC (as defined in section

tax year under section

section 1388(j)(3) by written notice to its

992(a)) to the extent the dividend:

1212(a)(1) . . . . . . . . . . . . . .

patrons.

2. Complete lines 10 and 11,

1. Is paid out of the cooperative’s

column (c) and enter the total

Special rules also apply if a

accumulated IC-DISC income or

here . . . . . . . . . . . . . . . . . .

cooperative has acquired the assets of

previously taxed income or

3. Subtract line 2 from line 1 . . . .

another cooperative under a section

2. Is a deemed distribution under

4. Multiply line 3 by 80% . . . . . . .

381(a) transaction. See section 1388(j)

section 995(b)(1).

5. Add lines 2, 5, 7, and 8, column

for more information. Cooperatives may

Line 16, Column (a). Include the

net earnings and losses under section

on line 3, column (c) that is

following:

1388(j) and still be eligible for tax-exempt

attributable to dividends

treatment. See section 521(b)(6).

1. Dividends (other than capital gain

received from

distributions reported on Schedule D

Note. Lines 1 and 2 apply only to section

20%-or-more-owned

(1120) and exempt-interest dividends)

521 cooperatives.

corporations . . . . . . . . . . . . .

-14-

Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - 2001 Page 14

Related Articles

Related forms

Related Categories