Partner'S Instructions For Schedule K-1 (Form 1065-B)

line 28, column (h) or (j). See the

Form 6251. However, if the AMT

activity or (b) a gain, report it on Schedule

instructions to determine whether you

adjustment is from a passive activity, it

D (Form 1040), line 12, column (f).

materially participated in a trade or

must be taken into account on line 18 with

If the amount is a loss from a passive

business activity.

adjustments and preferences from other

activity, report it following the Instructions

passive activities.

Report Code A1 income or (loss) from

for Form 8582 to figure how much of the

partnership trade or business activities in

loss can be reported on Schedule D, line

Code B1. General partner’s taxable

which you did not materially participate as

12, column (f). However, if the PTP box is

income (loss) from rental real estate

follows.

checked, report the loss following the

activities. Generally, the income or

rules for Publicly traded partnerships .

1. Report any income on Schedule E

(loss) reported in box 9, Code B1, is a

(Form 1040), line 28, column (g).

passive activity amount for all general

Code B3. General partner’s 28% rate

However, if the PTP box on Schedule K-1

partners. However, the income or (loss) in

gain or (loss) from rental real estate

is checked, report the income following

box 9 is not from a passive activity if you

activities. The 28% rate gain or (loss)

the rules for Publicly traded partnerships.

were a real estate professional and you

from a rental real estate activity is a

2. Report a loss following the

materially participated in the activity.

passive activity amount unless you were

Instructions for Form 8582 to figure how

a real estate professional and you

Use the following instructions to

much of the loss can be reported on

materially participated in the activity. If the

determine where to enter the Code B1

Schedule E (Form 1040), line 28, column

amount is either: (a) a loss that is not

amount.

(f). However, if the PTP box is checked,

from a passive activity; or (b) a gain,

report the loss following the rules for

1. If you have a loss from a passive

include it on line 4 of the 28% Rate Gain

Publicly traded partnerships.

activity in box 9, Code B1, and you meet

Worksheet on page D-7 of the

all of the following conditions, enter the

Instructions for Schedule D (Form 1040).

Code A2. General partner’s net capital

loss on Schedule E (Form 1040), line 28,

If the amount is a loss from a passive

gain or (loss) from trade or business

column (f).

activity, report it following the Instructions

activities. If you did not materially

a. You actively participated in the

for Form 8582 to figure how much of the

participate in the trade or business

partnership rental real estate activities.

loss can be included on line 4 of the 28%

activity, the net capital gain or (loss) is a

See Special allowance for rental real

Rate Gain Worksheet on page D-7 of the

passive activity amount. If the amount is

estate activities on page 4.

Instructions for Schedule D (Form 1040).

either: (a) a loss that is not from a passive

b. Rental real estate activities with

However, if the PTP box is checked,

activity; or (b) a gain, report it on

active participation were your only

report the loss following the rules for

Schedule D (Form 1040), line 12, column

passive activities.

Publicly traded partnerships.

(f).

c. You have no prior year unallowed

Code B4. General partner’s general

If the amount is a loss from a passive

losses from these activities.

credits from rental real estate

activity, report it following the Instructions

d. Your total loss from the rental real

activities. Report the general credits on

for Form 8582 to figure how much of the

estate activities was not more than

line 1y of Form 3800. Unless you were a

loss can be reported on Schedule D

$25,000 (not more than $12,500 if

real estate professional and materially

(Form 1040), line 12, column (f).

married filing separately and you lived

participated in the rental real estate

However, if the PTP box is checked,

apart from your spouse all year).

activity, you must also include the general

report the loss following the rules for

e. If you are a married person filing

credits on line 3 of Form 3800.

Publicly traded partnerships.

separately, you lived apart from your

Code B5. General partner’s

Code A3. General partner’s 28% rate

spouse all year.

low-income housing credit from rental

gain (loss) from trade or business

f. You have no current or prior year

activities. If you did not materially

real estate activities. Report the

unallowed credits from a passive activity.

low-income housing credit on line 4 of

participate in the trade or business

g. Your modified adjusted gross

Form 8586. Unless you were a real estate

activity, the 28% rate gain or (loss) is a

income was not more than $100,000 (not

passive activity amount. If the amount is

professional and materially participated in

more than $50,000 if married filing

the rental real estate activity, the

either: (a) a loss that is not from a passive

separately and you lived apart from your

low-income housing credit is a passive

activity, or (b) a gain, include it on line 4

spouse all year).

of the 28% Rate Gain Worksheet on page

activity credit.

2. If you have a (loss) from a passive

D-7 of the Instructions for Schedule D

Code B6. General partner’s

activity in box 9 and you do not meet all

(Form 1040).

rehabilitation credit from rental real

the conditions in 1 above, report the loss

If the amount is a loss from a passive

estate activities. Report the

following the Instructions for Form 8582 to

activity, report it following the Instructions

rehabilitation credit on line 1e of Form

figure how much of the loss you can

for Form 8582 to figure how much of the

3468, Investment Credit. Unless you were

report on Schedule E (Form 1040), line

loss can be included on line 4 of the 28%

a real estate professional and materially

28, column (f). However, if the PTP box is

Rate Gain Worksheet on page D-7 of the

participated in the rental real estate

checked, report the loss following the

Instructions for Schedule D (Form 1040).

activity, the credit is a passive activity

rules for Publicly traded partnerships.

However, if the PTP box is checked,

credit, and you must also file Form 3800.

3. If you were a real estate

report the loss following the rules for

Code B7. General partner’s alternative

professional and you materially

Publicly traded partnerships.

minimum tax adjustment from rental

participated in the activity, report box 9

Code A4. General partner’s general

real estate activities. An AMT

income or (loss) on Schedule E (Form

credits from trade or business

adjustment must be reported on line 15 of

1040), line 28, column (h) or (j).

activities. Report the general credits on

Form 6251. However, if the AMT

4. If you have income from a passive

line 1y of Form 3800. If you did not

adjustment is from a passive activity, it

activity in box 9, Code B1, enter the

materially participate in the trade or

must be taken into account on line 18 with

income on Schedule E (Form 1040), line

business activity, you must also include

other passive activities instead of being

28, column (g). However, if the PTP box

the general credits on line 3 of Form

reported on line 15.

is checked, report the income following

3800.

the rules for Publicly traded partnerships.

Code C1. General partner’s taxable

Code A5. General partner’s

income or (loss) from other rental

nonconventional source fuel credit

Code B2. General partner’s net capital

activities. Income (loss) reported in box

from trade or business activities.

gain or (loss) from rental real estate

9, Code C1, is a passive activity amount

Report this amount on line 13 of Form

activities (for the entire year). The net

for all general partners. Report a loss

8907, Nonconventional Source Fuel

capital gain or (loss) from a rental real

following the Instructions for Form 8582.

Credit.

estate activity is a passive activity amount

Report income on Schedule E (Form

unless you were a real estate

1040), line 28, column (g). However, if the

Code A6. General partner’s alternative

minimum tax adjustment from trade or

professional and you materially

PTP box for is checked, report the income

participated in the activity. If the amount is

business activities. Generally, an AMT

(loss) following the rules for Publicly

adjustment must be reported on line 15 of

either: (a) a loss that is not from a passive

traded partnerships.

-7-

Partner'S Instructions For Schedule K-1 (Form 1065-B) - 2005 Page 7

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