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 - Page 24
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•
disposition of property whose cost was
The private foundation’s election to
for each subsequent year until the
treated as a qualifying distribution when
treat repayments of loan principal as
set-aside amount has been distributed.
the property was acquired; and any
qualifying distributions.
See Regulations section
amount set aside under section 4942(g)
53.4942(a)-3(b)(7)(ii) for specific
Line 1b — Program-related
to the extent it is determined that this
requirements.
investments. Enter the total of the
amount is not necessary for the purposes
Line 5 — Reduced tax on investment
“Amount” column from Part IX-B. See the
of the set-aside.
income under section 4940(e). If the
Part IX-B instructions for the definition of
Line 6 — Deduction from distributable
organization does not qualify for the 1%
program-related investments.
amount. If the foundation was organized
tax under section 4940(e), enter zero.
Line 3 — Amounts set aside. Amounts
before May 27, 1969, and its governing
See Parts V and VI of the instructions.
set aside may be treated as qualifying
instrument or any other instrument
distributions only if the private foundation
Part XIII—Undistributed
continues to require the accumulation of
establishes to the satisfaction of the IRS
income after a judicial proceeding to
that the amount will be paid for the
Income
reform the instrument has terminated,
specific project within 60 months from the
then the amount of the income required to
If you checked box D2 on page 1, do not
date of the first set-aside and meets 1 or
be accumulated must be subtracted from
fill in this part.
2 below.
the distributable amount beginning with
If the organization is a private
1. The project can be better
the first tax year after the tax year in
operating foundation for any of the years
accomplished by a set-aside than by the
which the judicial proceeding was
shown in Part XIII, do not complete the
immediate payment of funds (suitability
terminated. (See the instructions for Part
portions of Part XIII that apply to those
test), or
VII-A, line 6.)
years. If there are excess qualifying
2. The private foundation meets the
distributions for any tax year, do not carry
Part XII—Qualifying
requirements of section 4942(g)(2)(B)(ii)
them over to a year in which the
(cash distribution test).
Distributions
organization is a private operating
foundation or to any later year. For
Set-aside under item 1. For any
“Qualifying distributions” are amounts
example, if a foundation made excess
set-aside under 1 above, the private
spent or set aside for religious,
qualifying distributions in 2003 and
foundation must apply for IRS approval by
educational, or similar charitable
became a private operating foundation in
the end of the tax year in which the
purposes. The total amount of qualifying
2005, the excess qualifying distributions
amount is set aside. Send the application
distributions for any year is used to
from 2003 could be applied against the
for approval to the:
reduce the distributable amount for
distributable amount for 2004 but not to
Internal Revenue Service
specified years to arrive at the
any year after 2004.
TE/GE EO - Determinations
undistributed income (if any) for
P.O. Box 2508
The purpose of this part is to enable
those years.
Cincinnati. OH 45201
the foundation to comply with the rules for
Line 1a — Expenses, contributions,
applying its qualifying distributions for the
gifts, etc. Enter the amount from Part I,
The application for approval must give
year 2005. In applying the qualifying
column (d), line 26. However, if the
all of the following information:
•
distributions, there are three basic steps.
borrowed funds election applies, add the
The nature and purposes of the specific
1. Reduce any undistributed income
total of the repayments during the year to
project and the amount of the set-aside
for 2004 (but not below zero).
the amount from Part I, column (d), line
for which approval is requested,
•
2. The organization may use any part
26, and enter it on line 1a.
The amounts and approximate dates of
or all remaining qualifying distributions for
any planned additions to the set-aside
Borrowed funds. If the foundation
2005 to satisfy elections. For example, if
after its initial establishment,
borrowed money in a tax year beginning
•
undistributed income remained for any
The reasons why the project can be
before January 1, 1970, or later borrows
year before 2004, it could be reduced to
better accomplished by the set-aside than
money under a written commitment
zero or, if the foundation wished, the
by the immediate payment of funds,
binding on December 31, 1969, the
•
distributions could be treated as
A detailed description of the project,
foundation may elect to treat any
distributions out of corpus.
including estimated costs, sources of any
repayments of the loan principal after
3. If no elections are involved, apply
future funds expected to be used for
December 31, 1969, as qualifying
remaining qualifying distributions to the
completion of the project, and the
distributions at the time of repayment,
2005 distributable amount on line 4d. If
location(s) (general or specific) of any
rather than at the earlier time that the
the remaining qualifying distributions are
physical facilities to be acquired or
borrowed funds were actually distributed,
greater than the 2005 distributable
constructed as part of the project, and
only if:
•
amount, the excess is treated as a
A statement of an appropriate
1. The money is used to make
distribution out of corpus on line 4e.
foundation manager that the amounts set
expenditures for a charitable or similar
aside will actually be paid for the specific
purpose, and
If for any reason the 2005 qualifying
project within a specified period of time
2. Repayment on the loan did not start
distributions do not reduce any 2004
ending within 60 months after the date of
until a year beginning after 1969.
undistributed income to zero, the amount
the first set-aside; or a statement
not distributed is subject to a 15% tax. If
explaining why the period for paying the
On these loans, deduct any interest
the 2004 income remains undistributed at
amount set aside should be extended and
payment from gross income to compute
the end of 2006, it could be subject again
indicating the extension of time
adjusted net income in the year paid.
to the 15% tax. Also, see section 4942(b)
requested. (Include in this statement the
Election. To make this election,
for the circumstances under which a
reason why the proposed project could
attach a statement to Form 990-PF for the
second-tier tax could be imposed.
not be divided into two or more projects
first tax year beginning after 1969 in
covering periods of no more than 60
Line 1 — Distributable amount. Enter
which a repayment of loan principal is
months each.)
the distributable amount for 2005 from
made and for each tax year after that in
Part XI, line 7.
which any repayment of loan principal is
Set-aside under item 2. For any
made. The statement should show:
set-aside under 2 above, the private
Line 2 — Undistributed income. Enter
•
The lender’s name and address,
foundation must attach a schedule to its
the distributable amount for 2004 and
•
The amount borrowed,
annual information return showing how
amounts for earlier years that remained
•
The specific use of the borrowed funds,
the requirements are met. A schedule is
undistributed at the beginning of the
and
required for the year of the set-aside and
2005 tax year.
-24-
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 - 2001
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 - 2010
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 - 2017
Financial
Related Categories
Parent category: Financial