Instructions For Form 990-Pf - Return Of Private Foundation Or Section 4947(A)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2010 Page 11
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32•
Attach the computation of the 85% test
The amounts entered in column (a)
990-T. Income from debt-financed
to Form 990-PF.
and on line 5b must be analyzed in Part
property that is not taxed under section
XVI-A.
511 is taxed under section 4940. Thus, if
Note. In addition to these requirements,
the debt/basis percentage of a
foreign organizations checking the box in
Column (a). Revenue and
debt-financed property is 80%, only 80%
D1 of the Form do not complete Part IV or
Expenses per Books
of the gross income (and expenses) for
Part I, line 7. See General Instruction B
Enter in column (a) all items of revenue
that property is used to figure the section
for more details.
and expense shown in the books and
511 tax on Form 990-T. The remaining
Item E. Section 507(b)(1)(A)
records that increased or decreased the
20% of the gross income (and expenses)
Terminations
net assets of the organization. However,
of that property is used to figure the
do not include the value of services
section 4940 tax on net investment
A private foundation that has terminated
donated to the foundation or items such
income on Form 990-PF. (See Form
its private foundation status under section
as free use of equipment or facilities in
990-T and its instructions for more
507(b)(1)(A), by distributing all its net
contributions received. Also, do not
information.)
assets to one or more public charities
include any expenses used to compute
Investment expenses. Include in
without keeping any right, title, or interest
capital gains and losses on lines 6, 7, and
column (b) all ordinary and necessary
in those assets, should check this box.
8 or expenses included in cost of goods
expenses paid or incurred to produce or
See General Instructions Q and T.
sold on line 10b.
collect investment income from interest,
Item F. 60-Month Termination
Column (b). Net Investment Income
dividends, rents, amounts received from
Under Section 507(b)(1)(B)
payments on securities loans (as defined
All domestic private foundations
in section 512(a)(5)), royalties, income
Check this box if the organization is
(including section 4947(a)(1) nonexempt
from notional principal contracts,
terminating its private foundation status
charitable trusts) are required to pay an
annuities, substantially similar income
under the 60-month provisions of section
excise tax each tax year on net
from ordinary and routine investments,
507(b)(1)(B) during the period covered by
investment income.
and income from similar sources; or for
this return. To begin such a termination, a
Exempt foreign foundations are
the management, conservation, or
private foundation must have given
subject to an excise tax on gross
maintenance of property held for the
advance notice to TE/GE at the Cincinnati
investment income from U.S. sources.
production of income that is taxable under
address given on page 10 and provided
These foreign organizations should
section 4940.
the information outlined in Regulations
complete lines 3, 4, 5, 11, 12, and 27b of
section 1.507-2T(b)(3). See General
If any of the expenses listed in column
column (b) and report only income
Instruction U for information regarding
(a) are paid or incurred for both
derived from U.S. sources. No other
filing requirements during a section
investment and charitable purposes, they
income should be included. No expenses
507(b)(1)(B) termination.
must be allocated on a reasonable basis
are allowed as deductions.
between the investment activities and the
See General Instruction V for
Definitions
charitable activities so that only expenses
information regarding payment of the tax
Gross investment income. Gross
from investment activities appear in
based on investment income (computed
investment income is the total amount of
column (b). Examples of allocation
in Part VI) during a section 507(b)(1)(B)
investment income that was received by a
methods are given in the instructions for
termination.
private foundation from all sources.
Part IX-A.
Item H. Type of Organization
However, it does not include any income
Limitation. The deduction for
subject to the unrelated business income
Check the box for “Section 501(c)(3)
expenses paid or incurred in any tax year
tax. It includes interest, dividends, rents,
exempt private foundation” if the
for producing gross investment income
payments with respect to securities loans
foundation has a ruling or determination
earned incident to a charitable function
(as defined in section 512(a)(5)), royalties
letter from the IRS in effect that
cannot be more than income earned from
received from assets devoted to
recognizes its exemption from federal
the function includible as gross
charitable activities, income from notional
income tax as an organization described
investment income for the year.
principal contracts (as defined in
in section 501(c)(3) or if the organization’s
For example, if rental income is
Regulations section 1.863-7), annuities,
exemption application is pending with the
incidentally realized in 2010 from historic
substantially similar income from ordinary
IRS.
buildings held open to the public,
and routine investments, and income from
Check the “Section 4947(a)(1)
deductions for amounts paid or incurred
similar sources. Therefore, interest
nonexempt charitable trust” box if the
in 2010 for the production of this income
received on a student loan is includible in
trust is a nonexempt charitable trust
may not be more than the amount of
the gross investment income of a private
treated as a private foundation. All others,
rental income includible as gross
foundation making the loan.
check the “Other taxable private
investment income in column (b) for 2010.
Net investment income. Net
foundation” box.
Expenses related to tax-exempt
investment income is the amount by
Item I. Fair Market Value of All
interest. Do not include on lines 13 – 23
which the sum of gross investment
Assets
of column (b) any expenses paid or
income and the capital gain net income
incurred that are allocable to tax-exempt
exceeds the allowable deductions
In block I on page 1 of Form 990-PF,
interest that is excluded from lines 3
discussed later. Tax-exempt interest on
enter the fair market value of all assets
and 4.
governmental obligations and related
the foundation held at the end of the tax
expenses are excluded.
year.
Column (c). Adjusted Net Income
Investment income. Include in column
This amount should be the same
(b) all or part of any amount from column
Nonoperating private foundations
as the figure reported in Part II,
TIP
(a) that applies to investment income.
should see Nonoperating private
TIP
line 16, column (c).
However, do not include in column (b)
foundations, later, to find out if
any income and related expenses
they need to complete column (c).
Part I. Analysis of Revenue
reported on Form 990-T.
Private operating foundations. All
and Expenses
For example, investment income from
organizations that claim status as private
debt-financed property unrelated to the
operating foundations under section
Column Instructions
organization’s charitable purpose and
4942(j)(3) or (5) must complete all lines of
The total of amounts in columns (b), (c),
certain rents (and related expenses)
column (c) that apply, according to the
and (d) may not necessarily equal the
treated as unrelated trade or business
general rules for income and expenses
amounts in column (a).
income should be reported on Form
that apply to this column, the specific line
-11-
Form 990-PF Instructions
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation -
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2009
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2007
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2008
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2003
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - Internal Revenue Service - 2004
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - 2001
Financial
Instructions For Form 990-pf - Return Of Private Foundation Or Section 4947(a)(1) Nonexempt Charitable Trust Treated As A Private Foundation - 2017
Financial
Related Categories
Parent category: Financial