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 Page 27
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
32because the organization filed a Form
XIII, line 3f) to satisfy the distribution
assets of the corporation are devoted to
4720 for a tax year that began before
requirements of section 170(b)(1)(F) or
those activities or functionally related
2007.
4942(g)(3), it must make the election
businesses.
under Regulations section
2. Endowment test. The foundation
Lines 6d and 6e. These amounts are
53.4942(a)-3(c)(2). Also, see Regulations
normally makes qualifying distributions
taxable under the provisions of section
section 1.170A-9(h)(2).
directly for the active conduct of the
4942(a), except for any part that is due
exempt purpose or functions for which it
solely to improper valuation of assets to
Enter on line 7 the total distributions
is organized and operated in an amount
which the provisions of section 4942(a)(2)
out of corpus made to satisfy the
that is two-thirds or more of its minimum
are being applied (see Part VII-B, line 2b).
restrictions on amounts received from
investment return.
Report the taxable amount on Form 4720.
donors described above.
3. Support test. The foundation
If the exception applies, attach an
Line 8 — Outdated excess distributions
normally receives 85% or more of its
explanation.
carryover. Because of the 5-year
support (other than gross investment
Line 6f. In the 2008 column, enter the
carryover limitation under section
income as defined in section 509(e)) from
amount by which line 1 is more than the
4942(i)(2), the organization must reduce
the public and from five or more exempt
total of lines 4d and 5. This is the
any excess distributions carryover by any
organizations that are not described in
undistributed income for 2008. The
amounts from 2003 that were not applied
section 4946(a)(1)(H) with respect to
organization must distribute the amount
in 2008.
each other or the recipient foundation.
shown by the end of its 2009 tax year so
Line 9 — Excess distributions
Not more than 25% of the support (other
that it will not be liable for the tax on
carryover to 2009. Enter the amount by
than gross investment income) normally
undistributed income.
which line 6a is more than the total of
may be received from any one of the
Line 7 — Distributions out of corpus for
lines 7 and 8. This is the amount the
exempt organizations and not more than
2008 pass-through distributions.
organization may apply to 2009 and
one-half of the support normally may be
following years. Line 9 can never be less
1. If the foundation is the donee and
received from gross investment income.
than zero.
receives a contribution from another
private foundation, the donor foundation
See regulations under section 4942 for
Line 10 — Analysis of line 9. In the
may treat the contribution as a qualifying
the meaning of “directly for the active
space provided for each year, enter the
distribution only if the donee foundation
conduct” of exempt activities for purposes
amount of excess distributions carryover
makes a distribution equal to the full
of these tests.
from that year that has not been applied
amount of the contribution and the
as of the end of the 2008 tax year. If there
Complying with these tests. A
distribution is a qualifying distribution that
is an amount on the line for 2004, it must
foundation may meet the income test and
is treated as a distribution of corpus. The
be applied by the end of the 2009 tax
either the assets, endowment, or support
donee foundation must, no later than the
year since the 5-year carryover period for
test by satisfying the tests for any 3 years
close of the first tax year after the tax year
2004 ends in 2009.
during a 4-year period consisting of the
in which it receives the contributions,
tax year in question and the 3
distribute an amount equal in value to the
Part XIV—Private
immediately preceding tax years. It may
contributions received in the prior tax year
also meet the tests based on the total of
Operating Foundations
and have no remaining undistributed
all related amounts of income or assets
income for the prior year. For example, if
All organizations that claim status as
held, received, or distributed during that
private foundation X received $1,000 in
private operating foundations under
4-year period. A foundation may not use
tax year 2007 from foundation Y,
section 4942(j)(3) or (5) for 2008 must
one method for satisfying the income test
foundation X would have to distribute the
complete Part XIV.
and another for satisfying one of the three
$1,000 as a qualifying distribution out of
alternative tests. Thus, if a foundation
Certain elderly care facilities (section
corpus by the end of 2008 and have no
meets the income test on the
4942(j)(5)). For purposes of section
remaining undistributed income for 2007.
3-out-of-4-year basis for a particular tax
4942 only, certain elderly care facilities
2. If a private foundation receives a
year, it may not use the 4-year
may be classified as private operating
contribution from an individual or a
aggregation method for meeting one of
foundations. To be so classified, they
corporation and the individual is seeking
the three alternative tests for that same
must be operated and maintained for the
the 50% contribution base limit on
year.
principal purpose explained in section
deductions for the tax year (or the
4942(j)(5) and also meet the endowment
In completing line 3c(3) of Part XIV
individual or corporation is not applying
test described below.
under the aggregation method, the largest
the limit imposed on deductions for
If the foundation is a section
amount of support from an exempt
contributions to the foundation of capital
4942(j)(5) organization, complete only
organization will be based on the total
gain property), the foundation must
lines 1a, 1b, 2c, 2d, 2e, and 3b. Enter
amount received for the 4-year period
comply with certain distribution
“N/A” on all other lines in the Total column
from any one exempt organization.
requirements.
for Part XIV.
By the 15th day of the 3rd month after
A new private foundation must use the
Private operating foundation (section
the end of the tax year in which the
aggregation method to satisfy the tests for
4942(j)(3)). The term “private operating
foundation received the contributions, the
its first tax year in order to be treated as a
foundation” means any private foundation
donee foundation must distribute as
private operating foundation from the
that spends at least 85% of the smaller of
qualifying distributions out of corpus:
beginning of that year. It must continue to
its adjusted net income or its minimum
use the aggregation method for its 2nd
a. An amount equal to 100% of all
investment return directly for the active
and 3rd tax years to maintain its status for
contributions received during the year in
conduct of the exempt purpose or
those years.
order for the individual contributor to
functions for which the foundation is
receive the benefit of the 50% limit on
organized and operated (the Income
Part XV—Supplementary
deductions, and
Test) and that also meets one of the three
b. Distribute all contributions of
Information
tests below.
property only so that the individual or
1. Assets test. 65% or more of the
Complete this part only if the foundation
corporation making the contribution is not
foundation’s assets are devoted directly
had assets of $5,000 or more at any time
subject to the section 170(e)(1)(B)(ii)
to those activities or functionally related
during the year. This part does not apply
limitations.
businesses, or both. Or 65% or more of
to a foreign foundation that during its
If the organization is applying excess
the foundation’s assets are stock of a
entire period of existence received
distributions from prior years (for
corporation that is controlled by the
substantially all (85% or more) of its
instance, any part of the amount in Part
foundation, and substantially all of the
support (other than gross investment
-27-
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 - 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 - 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