Instructions For Form 1120-Pc - 2010 (Page 12 of 21) in pdf

Line 24. Pension, profit-sharing, etc.,

directors during the tax year. The

a $500 deduction for the property, it must,

plans. Enter the deduction for

declaration must include the date the

generally, attach a schedule to the return

contributions to qualified pension,

resolution was adopted. See Regulations

describing the kind of property contributed

profit-sharing, or other funded deferred

section 1.170A-11.

and the method used to determine its fair

compensation plans. Employers who

market value (FMV). Generally, attach

If the corporation contributed

maintain such a plan generally must file

Form 8283, Noncash Charitable

money for the relief of victims in

one of the forms listed below unless

Contributions, to the return for

areas affected by the January 12,

CAUTION

exempt from filing under regulations or

contributions of property (other than

2010 earthquake in Haiti and chose to

other applicable guidance, even if the

money) if the total claimed deduction for

deduct those amounts on its 2009 return

plan is not a qualified plan under the

all property contributed was more than

instead of its 2010 return, do not include

Internal Revenue Code. The filing

$5,000. Special rules apply to the

those amounts on Schedule A, line 21.

requirement applies even if the

contribution of certain property. See the

Limitation on deduction. The total

corporation does not claim a deduction for

Instructions for Form 8283.

amount claimed cannot be more than

the current tax year. There are penalties

Qualified conservation contributions.

10% of taxable income (line 37, Schedule

for failure to file these forms on time and

Special rules apply to qualified

A) computed without regard to the

for overstating the pension plan

conservation contributions, including

following.

deduction. See sections 6652(e) and

contributions of certain easements on

•

Any deduction for contributions.

6662(f). Also, see the instructions for the

buildings located in a registered historic

•

The deduction for dividends received.

applicable form.

district. See Section 170(h) and Pub. 526,

•

The domestic production activities

Form 5500, Annual Return/Report of

Charitable Contributions.

deduction under section 199.

Employee Benefit Plan.

Other special rules. The corporation

•

Any net operating loss (NOL) carryback

Form 5500-SF, Short Form Annual

must reduce its deduction for

to the tax year under section 172.

contributions of certain capital gain

Return/Report of Small Employee Benefit

•

Any capital loss carryback to the tax

property. See sections 170(e)(1) and

Plan. File this form instead of Form 5500,

year under section 1212(a)(1).

170(e)(5).

generally, if there are under 100

Carryover. Charitable contributions

participants at the beginning of the plan

A larger deduction is allowed for

over the 10% limitation cannot be

year.

certain contributions of:

deducted for the tax year but may be

•

Note. Form 5500 and Form 5500-SF

Inventory and other property to certain

carried over to the next 5 tax years.

must be filed electronically under the

organizations for use in the care of the ill,

Special rules apply if the corporation

computerized ERISA Filing Acceptance

needy, or infants (see section 170(e)(3)),

has an NOL carryover to the tax year. In

System (EFAST2). For more information,

including contributions of “apparently

figuring the charitable contributions

see the EFAST2 website at

wholesome food” (see section

deduction for the current tax year, the

dol.gov.

170(e)(3)(C)), and contributions of

10% limit is applied using taxable income

qualified book inventory to public schools

Form 5500-EZ, Annual Return of

after taking into account any deduction for

(see section 170(e)(3)(D));

One-Participant (Owners and Their

the NOL.

•

Scientific equipment used for research

Spouses) Retirement Plan. File this form

To figure the amount of any remaining

to institutions of higher learning or to

for a plan that only covers the owner (or

NOL carryover to later years, taxable

certain scientific research organizations

the owner and his or her spouse) but only

income must be modified (see section

(other than by personal holding

if the owner (or the owner and his or her

172(b)). To the extent that contributions

companies and service organizations

spouse) owns the entire business.

are used to reduce taxable income for this

(section 170(e)(4)); and

Line 25. Employee benefit programs.

•

purpose and increase an NOL carryover,

Computer technology and equipment

Enter contributions to employee benefit

a contributions carryover is not allowed.

for educational purposes (section

programs not claimed elsewhere on the

See section 170(d)(2)(B).

170(e)(6)).

return (for example, insurance, health and

Cash contributions. For contributions

For more information on charitable

welfare programs, etc.) that are not an

of cash, check, or other monetary gifts

contributions, including substantiation and

incidental part of a pension, profit-sharing,

(regardless of the amount), the

recordkeeping requirements, see section

etc., plan included on line 24.

corporation must maintain a bank record,

170 and the related regulations and Pub.

Line 27. Additional deduction. Enter

or a receipt, letter, or other written

526. For other special rules that apply to

on line 27 the total from Form 8816, Part

communication from the donee

corporations, see Pub. 542.

II, line 5.

organization indicating the name of the

Line 22. Depreciation. Include on line

Any insurance company taking the

organization, the date of the contribution,

22 depreciation and the cost of certain

and the amount of the contribution.

additional deduction must:

property that the corporation elected to

•

Make special estimated tax payments

Contributions of $250 or more. A

expense under section 179. See Form

equal to the tax benefit from the

corporation can deduct a gift of $250 or

4562 and the Instructions for Form 4562.

deduction and

more only if it gets a written

Line 23. Depletion. See sections 613

•

Establish and maintain a Special Loss

acknowledgment from the donee

and 613A for percentage depletion rates

Discount Account. See section 847 and

organization that shows the amount of

applicable to natural deposits. Also, see

Form 8816 for more information.

cash contributed, describes any property

section 291 for the limitation on the

contributed, and, either gives a

Line 29. Dividends to policyholders.

depletion deduction for iron ore and coal

description and a good faith estimate of

Enter the total dividends and similar

(including lignite).

the value of any goods or services

distributions paid or declared to

Attach Form T (Timber), Forest

provided in return for the contribution or

policyholders, as policyholders, except in

Activities Schedule, if a deduction for

the case of a mutual fire insurance

states that no goods or services were

depletion of timber is taken.

company exclusively issuing perpetual

provided in return for the contribution. The

Foreign intangible drilling costs and

policies. Whether dividends have been

acknowledgment must be obtained by the

foreign exploration and development

paid or declared should be determined

due date (including extensions) of the

costs must either be added to the

according to the method of accounting

corporation’s return, or, if earlier, the date

corporation’s basis for cost depletion

employed by the insurance company.

the return is filed. Do not attach the

purposes or be deducted ratably over a

acknowledgment to the tax return, but

Dividends and similar distributions

10-year period. See sections 263(i), 616,

keep it with the corporation’s records.

include amounts returned or credited to

and 617.

Contributions of property other than

policyholders on cancellation or expiration

cash. If a corporation contributes

See Pub. 535 for more information on

of policies issued by a mutual fire or flood

property other than cash and claims over

depletion.

insurance company:

-12-

Instructions for Form 1120-PC (2010)

Instructions For Form 1120-Pc - 2010 Page 12

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