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

Reducing certain expenses for

Any empowerment zone

See section 164(d) for

which credits are allowable. For

employment credit from Form 8844,

apportionment of taxes on real

each credit listed below, the

property between the seller and

Any Indian employment credit from

cooperative must reduce the

purchaser.

Form 8845, and

otherwise allowable deductions for

Line 18. Interest.

Any welfare-to-work credit from

expenses used to figure the credit by

Form 8861.

Note: The deduction for interest is

the amount of the current year credit:

See the instructions for these forms

limited when the cooperative is a

1. Work opportunity credit.

for more information. Do not include

policyholder or beneficiary with

2. Research credit.

salaries and wages deductible

respect to a life insurance,

elsewhere on the return, such as

endowment, or annuity contract

3. Enhanced oil recovery credit.

amounts included in cost of goods

issued after June 8, 1997. For details,

4. Disabled access credit.

sold, elective contributions to a

see section 264(f). Attach a statement

5. Empowerment zone

section 401(k) cash or deferred

showing the computation of the

employment credit.

arrangement, or amounts contributed

deduction.

6. Indian employment credit.

under a salary reduction SEP

Do not deduct the following

7. The employer credit for social

agreement or a SIMPLE IRA plan.

interest:

security and Medicare taxes paid on

Interest on indebtedness incurred

If the cooperative provided

tips.

or continued to purchase or carry

taxable fringe benefits to its

8. Orphan drug credit.

obligations the interest on which is

employees, such as personal

CAUTION

9. Welfare-to-work credit.

wholly exempt from income tax.

use of a car, do not deduct as wages

If the cooperative has any of these

For cash basis taxpayers, prepaid

the amount allocated for depreciation

credits, figure each current year credit

interest allocable to years following

and other expenses claimed on lines

before figuring the deduction for

the current tax year (e.g., a cash

20 and 26.

expenses on which the credit is

basis calendar year taxpayer who in

Line 14. Repairs and maintenance.

based.

2000 prepaid interest allocable to any

Enter the cost of incidental repairs,

Line 12. Compensation of officers.

period after 2000 can deduct only the

such as labor and supplies, that do

Enter deductible officers'

amount allocable to 2000).

not add to the value of the property

compensation on line 12. Before

Interest and carrying charges on

or appreciably prolong its life. New

entering an amount on line 12,

straddles. Generally, these amounts

buildings, machinery, or permanent

complete Schedule E if the

must be capitalized. See section

improvements that increase the value

cooperative's total receipts (line 1a

263(g).

of the property are not deductible.

plus lines 4 through 10, page 1) are

They must be depreciated or

Interest on debt allocable to the

$500,000 or more. Do not include

amortized.

production of designated property by

compensation deductible elsewhere

a cooperative for its own use or for

Line 15. Bad debts. Enter the total

on the return, such as amounts

sale. This interest must be

debts that became worthless in whole

included in cost of goods sold,

capitalized. A cooperative must also

or in part during the tax year.

elective contributions to a section

capitalize any interest on debt

401(k) cash or deferred arrangement,

A cash method taxpayer may

allocable to an asset used to produce

or amounts contributed under a salary

not claim a bad debt deduction

the above property. See section

reduction SEP agreement or a

unless the amount was

CAUTION

263A(f) and Regulations sections

SIMPLE IRA plan.

previously included in income.

1.263A-8 through 1.263A-15 for

Include only the deductible part of

Line 17. Taxes and licenses. Enter

definitions and more information.

officers' compensation on Schedule

taxes paid or accrued during the tax

Special rules apply to:

E. (See Disallowance of deduction

year, but do not include the

Interest on which no tax is imposed

for employee compensation in

following:

(see section 163(j)).

excess of $1 million below).

Federal income taxes.

Forgone interest on certain

Complete Schedule E, line 1,

Foreign or U.S. possession income

below-market-rate loans (see section

columns (a) through (f), for all

taxes if a tax credit is claimed

7872).

officers. The cooperative determines

(however, see the instructions for

Original issue discount on certain

who is an officer under the laws of the

Form 5735 for special rules for

high yield discount obligations (see

state where it is organized.

possession income taxes).

section 163(e) to figure the

If a consolidated return is filed,

Taxes not imposed on the

disqualified portion).

each member of an affiliated group

cooperative.

Line 19. Charitable contributions.

must furnish this information.

Taxes, including state or local sales

Enter contributions or gifts actually

Disallowance of deduction for

taxes, that are paid or incurred in

paid in the tax year to or for the use

employee compensation in excess

connection with an acquisition or

of charitable and governmental

of $1 million. Publicly held

disposition of property (these taxes

organizations described in section

corporations may not deduct

must be treated as part of the cost of

170(c) and any unused contributions

compensation to a “covered

the acquired property, or in the case

carried over from prior years.

employee” to the extent that the

of a disposition, as a reduction in the

Cooperatives reporting taxable

compensation exceeds $1 million.

amount realized on the disposition).

income on the accrual method may

For details, see section 162(m) and

Taxes assessed against local

elect to treat as paid during the tax

Regulations section 1.162-27.

benefits that increase the value of the

year any contributions paid by the

Line 13. Salaries and wages. Enter

property assessed (such as for

15th day of the 3rd month after the

the amount of salaries and wages

paving, etc.).

end of the tax year if the contributions

paid for the tax year, reduced by:

Taxes deducted elsewhere on the

were authorized by the board of

Any work opportunity credit from

return, such as those reflected in cost

directors during the current tax year.

Form 5884,

of goods sold.

Attach a declaration to the return,

Page 9

Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - 2000 Page 9

Related Articles

Related forms

Related Categories