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 Page 17
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•
Line 29 — Retained earnings,
Nonoperating private foundations may
The rules that generally apply to
accumulated income, endowment, or
not have to figure their short-term capital
property dispositions reported in this part
other funds. For corporations, enter the
gain or loss on line 3. See the rules for
are:
•
balance in the retained earnings, or
Nonoperating private foundations on
Section 1011, Adjusted basis for
similar account, minus the cost of any
page 11.
determining gain or loss.
•
corporate treasury stock. For trusts, enter
Private foundations must report gains
Section 1012, Basis of property — cost.
•
the balance per books in the accumulated
and losses from the sale or other
Section 1014, Basis of property
income or similar account. For
disposition of property:
acquired from a decedent.
•
•
organizations using fund accounting,
Held for investment purposes or
Section 1015, Basis of property
•
enter the total of the fund balances for the
Used to produce unrelated business
acquired by gifts and transfers in trust.
•
permanent and term endowment funds as
income; however, only include in net
Section 1016, Adjustments to basis.
well as balances of any other funds not
investment income the part of the gain or
To figure a loss, basis on the date of
reported on lines 27 and 28.
loss that is not included in the
disposition is determined under normal
computation of its unrelated business
basis rules.
Line 30 — Total net assets or fund
taxable income.
balances. For organizations that follow
The completed Form 990-PF in
SFAS 117, enter the total of lines 24
Package 990-PF, Returns for Private
Property held for investment
through 26. For all other organizations,
Foundations or Section 4947(a)(1)
purposes. Property is treated as held for
enter the total of lines 27 through 29.
Nonexempt Charitable Trusts Treated as
investment purposes if the property is of a
Enter the beginning-of-year figure in
Private Foundations, contains an example
type that generally produces interest,
column (a) on line 1, Part III. The
of a sale of investment property in which
dividends, rents, or royalties, even if the
end-of-year figure in column (b) must
the gain was computed using the donor’s
foundation disposes of the property as
agree with the figure in Part III, line 6.
basis under the rules of section 1015(a).
soon as it receives it.
Line 31 — Total liabilities and net
Part V—Qualification
Charitable use property. Do not include
assets/fund balances. Enter the total of
any gain or loss from disposing of
lines 23 and 30. This amount must equal
Under Section 4940(e) for
property used for the foundation’s
the amount for total assets reported on
charitable purposes in the computation of
Reduced Tax on Net
line 16 for both the beginning and end of
tax on net investment income. If the
the year.
Investment Income
foundation uses property for its charitable
purposes, but also incidentally derives
This part is used by domestic private
Part III—Analysis of
income from the property that is subject to
foundations (exempt and taxable) to
Changes in Net Assets or
the net investment income tax, any gain
determine whether they qualify for the
or loss from the sale or other disposition
reduced 1% tax under section 4940(e) on
Fund Balances
of the property is not subject to the tax.
net investment income rather than the 2%
Generally, the excess of revenue over
tax on net investment income under
However, if the foundation uses
expenses accounts for the difference
section 4940(a).
property both for charitable purposes and
between the net assets at the beginning
Do not complete Part V if this is the
(other than incidentally) for investment
and end of the year.
organization’s first year. A private
purposes, include in the computation of
On line 2, Part III, re-enter the figure
foundation cannot qualify under section
tax on net investment income the part of
from Part I, line 27(a), column (a).
4940(e) for its first year of existence, nor
the gain or loss from the sale or
can a former public charity qualify for the
On lines 3 and 5, list any changes in
disposition of the property that is allocable
first year it is treated as a private
to the investment use of the property.
net assets that were not caused by the
foundation.
receipts or expenses shown in Part I,
Program-related investments. Do
column (a). For example, if a foundation
A separate computation must be made
not include gains or losses from the sale
follows FASB Statement No. 12 and
for each year in which the foundation
or exchange of program-related
shows an asset in the ending balance
wants to qualify for the reduced tax.
investments as defined in the instructions
sheet at a higher value than in the
Line 1, column (b). Enter the amount of
for Part IX-B.
beginning balance sheet because of an
adjusted qualifying distributions made for
increased market value (after a larger
Losses. If the disposition of investment
each year shown. The amounts in column
decrease in a prior year), include the
property results in a loss, that loss may
(b) are taken from Part XII, line 6 of the
increase in Part III, line 3.
be subtracted from capital gains realized
Form 990-PF for 1998 – 2002.
from the disposition of property during the
If the organization uses a stepped-up
Line 1, column (c). Enter the net value
same tax year but only to the extent of the
basis to determine gains on sales of
of noncharitable-use assets for each year.
gains. If losses are more than gains, the
assets included in Part I, column (a), then
The amounts in column (c) are taken from
excess may not be subtracted from gross
include the amount of step-up in basis in
Part X, line 5, for 1998 – 2002.
investment income, nor may the losses
Part III. If you entered a contribution, gift,
be carried back or forward to other tax
or grant of property valued at fair market
Part VI—Excise Tax Based
years.
value on line 25 of Part I, column (a), the
on Investment Income
difference between fair market value and
Basis. The basis for determining gain
book value should be shown in the books
(Section 4940(a), 4940(b),
from the sale or other disposition of
of account and as a net asset adjustment
property is the larger of:
4940(e), or 4948)
in Part III.
1. The fair market value of the
property on December 31, 1969, plus or
Part IV—Capital Gains and
General Rules
minus all adjustments after December 31,
Losses for Tax on
1969, and before the date of disposition, if
Domestic exempt private foundations.
the foundation held the property on that
These foundations are subject to a 2%
Investment Income
date and continuously after that date until
tax on net investment income under
Use Part IV to figure the amount of net
disposition or
section 4940(a). However, certain exempt
capital gain to report on lines 7 and 8 of
2. The basis of the property on the
operating foundations described in
Part I.
date of disposition under normal basis
section 4940(d)(2) may not owe any tax,
•
Part IV does not apply to foreign
rules (actual basis). See Code sections
and certain private foundations that meet
organizations.
1011 – 1021.
the requirements of section 4940(e) may
-17-
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 - 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 - 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