Looking for a Form 990-c Templates? Download it for free!

•

Larger deduction. A larger deduction

days after the contribution and notifies the

Amortization of pollution control

is allowed for certain contributions, such

donor of the contribution. For details, see

facilities, organization expenses, etc. See

as:

section 170(e)(6)(C).

Form 4562.

•

Inventory and other property donated to

For contributions of property reacquired

Insurance premiums.

•

certain organizations for use in the care of

by the manufacturer of the property, the

Legal and professional fees.

•

the ill, needy, or infants (see section

3-year period begins on the date that the

Supplies used and consumed in the

170(e)(3) and Regulations section

original construction of the property was

business.

•

1.170A-4A);

substantially completed. Also, the original

Utilities.

•

Scientific equipment used for research

use of the property may be by someone

Ordinary losses from trade or business

donated to institutions of higher learning

other than the donor or the donee.

activities of a partnership (from Schedule

or to certain scientific research

K-1 (Form 1065 or 1065-B)). Do not offset

Line 20. Depreciation. Besides

organizations (other than by personal

ordinary losses against ordinary income.

depreciation, include on line 20 the part of

holding companies and service

Instead, include the income on line 10.

the cost that the cooperative elected to

organizations) (see section 170(e)(4));

Show the partnership’s name, address,

expense under section 179 for certain

and

and EIN on a separate statement

property placed in service during tax year

•

Computer technology and equipment

attached to this return. If the amount

2003 or carried over from 2002. See

used for educational purposes.

entered is from more than one

Form 4562 and its instructions.

partnership, identify the amount from

Contributions of computer

Line 22. Depletion. See sections 613

each partnership.

technology and equipment for

and 613A for percentage depletion rates

•

Extraterritorial income exclusion (from

educational purposes. A cooperative

applicable to natural deposits. Also, see

Form 8873, line 52).

may take an increased deduction under

section 291(a)(2) for the limitation on the

section 170(e)(6) for qualified

depletion deduction for iron ore and coal

Do not deduct:

contributions of computer technology or

(including lignite).

•

Fines or penalties paid to a government

equipment used for educational purposes.

Attach Form T (Timber), Forest

for violating any law.

Computer technology or equipment

•

Activities Schedule, if a deduction for

Any amount allocable to a class of

means computer software, computer or

depletion of timber is taken.

exempt income. See section 265(b) for

peripheral equipment, and fiber optic

exceptions.

Foreign intangible drilling costs and

cable related to computer use. A

Special rules apply to the following

foreign exploration and development

contribution is a qualified contribution if:

expenses.

•

costs must either be added to the

It is made to an eligible donee (see

Travel, meals, and entertainment.

cooperative’s basis for cost depletion

below);

•

Subject to limitations and restrictions

purposes or be deducted ratably over a

Substantially all of the donee property’s

discussed below, a cooperative can

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

use is:

deduct ordinary and necessary travel,

and 617 for details.

1. Related to the purpose or function

meals, and entertainment expenses paid

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

of the donee,

or incurred in its trade or business.

plans. Enter the deduction for

2. For use within the United States,

For details on rules that apply to

contributions to qualified pension,

and

deductions for gifts, skybox rentals, luxury

profit-sharing, or other funded deferred

3. For educational purposes.

•

water travel, convention expenses, and

compensation plans. Employers who

The contribution is made not later than

entertainment tickets, see section 274

maintain such a plan generally must file

3 years after the date the taxpayer

and Pub. 463.

one of the forms listed below, even if the

acquired or substantially completed the

plan is not a qualified plan under the

construction of the property;

Travel. The cooperative cannot

•

Internal Revenue Code. The filing

The original use of the property is by

deduct travel expenses of any individual

requirement applies even if the

the donor or the donee;

accompanying a cooperative officer or

•

cooperative does not claim a deduction

The property is not transferred by the

employee, including a spouse or

for the current tax year. There are

donee for money, services, or other

dependent of the officer or employee,

penalties for failure to file these forms

property, except for shipping, transfer,

unless:

•

timely and for overstating the pension

and installation costs;

That individual is an employee of the

•

plan deduction. See sections 6652(e) and

The property fits productively into the

cooperative and

•

6662(f).

donee’s education plan; and

His or her travel is for a bona fide

•

The property meets standards, if any,

business purpose that would otherwise be

Form 5500, Annual Return/Report of

that may be prescribed by future

deductible by that individual.

Employee Benefit Plan. File this form for

regulations, to assure it meets minimum

a plan that is not a one-participant plan

Meals and entertainment. Generally,

functionality and suitability for educational

(see below).

the cooperative can deduct only 50% of

purposes.

the amount otherwise allowable for meals

Form 5500-EZ, Annual Return of

Eligible donee. The term “eligible

and entertainment expenses paid or

One-Participant (Owners and Their

donee” means:

incurred in its trade or business. In

Spouses) Retirement Plan. File this form

•

An educational organization that

addition (subject to exceptions under

for a plan that only covers the owner (or

normally maintains a regular faculty and

section 274(k)(2)):

the owner and his or her spouse) but only

•

curriculum and has a regularly enrolled

Meals must not be lavish or

if the owner (or the owner and his or her

extravagant;

body of pupils in attendance at the place

spouse) owns the entire business.

•

where its educational activities are

A bona fide business discussion must

Line 25. Employee benefit programs.

regularly conducted,

occur during, immediately before, or

•

Enter the contributions to employee

A section 501(c)(3) entity organized

immediately after the meal; and

benefit programs not claimed elsewhere

•

An employee must be present at the

primarily for purposes of supporting

on the return (e.g., insurance, health and

elementary and secondary education, or

meal.

•

welfare programs, etc.) that are not an

A public library (as described in section

See section 274(n)(3) for a special rule

incidental part of a pension, profit-sharing,

170(e)(6)(B)(i)(III)).

that applies to meal expenses for

etc., plan included on line 24.

individuals subject to the hours of service

Exceptions. The following exceptions

Line 26. Other deductions. Attach a

limits of the Department of Transporta-

apply to the above rules for computer

schedule, listing by type and amount, all

tion.

technology and equipment:

•

allowable deductions that are not

Contributions to private foundations

Membership dues. The cooperative

deductible elsewhere.

may qualify if the foundation contributes

may deduct amounts paid or incurred for

the property to an eligible donee within 30

Examples of items to include:

membership dues in civic or public

-10-

Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - Internal Revenue Service - 2003 Page 10

Related Articles

Related forms

Related Categories