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

Line 20. Depreciation. Besides

Line 26. Other deductions.

A bona fide business discussion

depreciation, include on line 20 the

must occur during, immediately

Attach a schedule, listing by type

part of the cost that the cooperative

before, or immediately after the meal;

and amount, all allowable deductions

elected to expense under section 179

and

that are not deductible elsewhere on

for certain tangible property placed in

Form 990-C.

An employee must be present at

service during tax year 2000 or

the meal.

Examples of amounts to include:

carried over from 1999. See Form

See section 274(n)(3) for a special

Amortization of pollution control

4562, Depreciation and Amortization,

rule that applies to meal expenses for

facilities, organization expenses, etc.

and its instructions.

individuals subject to the hours of

See Form 4562.

Line 22. Depletion. See sections

service limits of the Department of

Insurance premiums.

613 and 613A for percentage

Transportation.

Legal and professional fees.

depletion rates applicable to natural

Membership dues. The

Supplies used and consumed in the

deposits. Also, see section 291 for

cooperative may deduct amounts

business.

the limitation on the depletion

paid or incurred for membership dues

Utilities.

deduction for iron ore and coal

in civic or public service

Ordinary losses from trade or

(including lignite).

organizations, professional

business activities of a partnership

Attach Form T (Timber), Forest

organizations, business leagues,

(from Schedule K-1 (Form 1065 or

Activities Schedules, if a deduction for

trade associations, chambers of

1065-B). Do not offset ordinary losses

depletion of timber is taken.

commerce, boards of trade, and real

against ordinary income. Instead,

Foreign intangible drilling costs and

estate boards, unless a principal

include the income on line 10. If the

foreign exploration and development

purpose of the organization is to

amount entered is from more than

costs must either be added to the

entertain or provide entertainment

one partnership, identify the amount

cooperative's basis for cost depletion

facilities for members or their guest.

from each partnership.

purposes or be deducted ratably over

In addition, cooperatives may not

Also see Special rules below for

a 10-year period. See sections 263(i),

deduct membership dues in any club

limits on certain other deductions.

616, and 617 for details.

organized for business, pleasure,

Do not deduct:

recreation, or other social purpose.

Line 24. Pension, profit-sharing,

Fines or penalties paid to a

This includes country clubs, golf and

etc., plans. Enter the deduction for

government for violating any law.

athletic clubs, airline and hotel clubs,

contributions to qualified pension,

and clubs operated to provide meals

Any amount that is allocable to a

profit-sharing, or other funded

class of exempt income. See section

under conditions favorable to

deferred compensation plans.

business discussion.

265(b) for exceptions.

Employers who maintain such a plan

generally must file one of the forms

Entertainment facilities. The

Special rules apply to the following

listed below, even if the plan is not a

expenses.

cooperative cannot deduct an

qualified plan under the Internal

expense paid or incurred for a facility

Travel, meals, and entertainment.

Revenue Code. The filing

(such as a yacht or hunting lodge)

Subject to limitations and restrictions

requirement applies even if the

used for an activity that is usually

discussed below, a cooperative can

cooperative does not claim a

considered entertainment,

deduct ordinary and necessary travel,

deduction for the current tax year.

amusement, or recreation.

meals, and entertainment expenses

There are penalties for failure to file

paid or incurred in its trade or

Note: The cooperative may be able

these forms on time and for

to deduct the otherwise nondeductible

business. Also, special rules apply to

overstating the pension plan

deductions for gifts, skybox rentals,

expense if the amount is treated as

deduction. See sections 6652(e) and

compensation and reported on Form

luxury water travel, convention

6662(f).

expenses, and entertainment tickets.

W-2 for an employee or on Form

1099-MISC for an independent

Form 5500, Annual Return/Report of

For details, see section 274 and Pub.

Employee Benefit Plan. File this form

463.

contractor.

for a plan that is not a one-participant

Travel. The cooperative cannot

Lobbying expenses. Generally,

plan (see below).

lobbying expenses are not deductible.

deduct travel expenses of any

Form 5500-EZ, Annual Return of

individual accompanying a

These expenses include:

One-Participant (Owners and Their

cooperative officer or employee,

Amounts paid or incurred in

Spouses) Retirement Plan. File this

including a spouse or dependent of

connection with influencing Federal

form for a plan that only covers the

the officer or employee, unless:

or state legislation (but not local

owner (or the owner and his or her

That individual is an employee of

legislation) or

spouse) but only if the owner (or the

the cooperative and

Amounts paid or incurred in

own and his or her spouse) owns the

connection with any communication

His or her travel is for a bona fide

entire business.

business purpose and would

with certain Federal executive branch

Line 25. Employee benefit

officials in an attempt to influence the

otherwise be deductible by that

programs. Enter the contributions to

official actions or positions of the

individual.

employee benefit programs not

officials. See Regulations section

Meals and entertainment.

claimed elsewhere on the return (e.g.,

1.162-29 for the definition of

Generally, the cooperative can deduct

insurance, health and welfare

“influencing legislation.”

only 50% of the amount otherwise

programs, etc.) that are not an

allowable for meals and

Dues and other similar amounts

incidental part of a pension,

paid to certain tax-exempt

entertainment expenses paid or

profit-sharing, etc., plan included on

incurred in its trade or business. In

organizations may not be deductible.

line 24.

See section 162(e)(3). If certain

addition (subject to exceptions under

in-house expenditures do not exceed

section 274(k)(2)):

$2,000, they are deductible. For

Meals must not be lavish or

information on contributions to

extravagant;

Page 11

Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - 2000 Page 11

Related Articles

Related forms

Related Categories