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the net amount to enter on line 25 of Form

distributions made on the last day of the

6251.

partnership’s tax year.

Box 20. Other Information

Code F. Other AMT items. Enter the

Your basis in the distributed marketable

information on the statement attached by

securities (other than in liquidation of your

Code A. Investment income. Report this

the partnership on the applicable lines of

interest) is the smaller of:

amount on line 4a of Form 4952.

•

Form 6251, Form 4626, or Schedule I of

The partnership’s adjusted basis in the

Code B. Investment expenses. Report

Form 1041.

securities immediately before the distribution

this amount on line 5 of Form 4952.

increased by any gain recognized on the

Code C. Fuel tax credit information. The

distribution of the securities or

•

partnership will report the number of gallons

Box 18. Tax-Exempt

The adjusted basis of your partnership

of each fuel sold or used during the tax year

interest reduced by any cash distributed in

Income and Nondeductible

for a nontaxable use qualifying for the credit

the same transaction and increased by any

for taxes paid on fuels, type of use, and the

gain recognized on the distribution of the

Expenses

applicable credit per gallon. Use this

securities.

information to complete Form 4136, Credit

Code A. Tax-exempt interest income.

If you received the securities in

for Federal Tax Paid on Fuels.

You must report on your return, as an item

liquidation of your partnership interest, your

of information, your share of the tax-exempt

Code D. Look-back interest — completed

basis in the marketable securities is equal to

interest received or accrued by the

long-term contracts. The partnership will

the adjusted basis of your partnership

partnership during the year. Individual

report any information you need to figure the

interest reduced by any cash distributed in

partners must include this amount on Form

interest due or to be refunded under the

the same transaction and increased by any

1040, line 8b. Increase the adjusted basis of

look-back method of section 460(b)(2) on

gain recognized on the distribution of the

your interest in the partnership by this

certain long-term contracts. Use Form 8697,

securities.

amount.

Interest Computation Under the Look-Back

If, within 5 years of a distribution to you

Method for Completed Long-Term

Code B. Other tax-exempt income.

of marketable securities, you contributed

Contracts, to report any such interest.

Increase the adjusted basis of your interest

appreciated property (other than those

in the partnership by the amount shown, but

Code E. Look-back interest — income

securities) to the partnership and the FMV of

do not include it in income on your tax

forecast method. The partnership will

those securities exceeded the adjusted

return.

report any information you need to figure the

basis of your partnership interest

interest due or to be refunded under the

Code C. Nondeductible expenses. The

immediately before the distribution (reduced

look-back method of section 167(g)(2) for

nondeductible expenses paid or incurred by

by any cash received in the distribution), you

certain property placed in service after

the partnership are not deductible on your

may have to recognize gain on the

September 13, 1995, and depreciated under

tax return. Decrease the adjusted basis of

appreciated property. For property

the income forecast method. Use Form

your interest in the partnership by this

contributed after June 8, 1997, the 5-year

8866, Interest Computation Under the

amount.

period is generally extended to 7 years. See

Look-Back Method for Property Depreciated

section 737 for details.

Under the Income Forecast Method, to

Code B. Other property. Code B shows

report any such interest.

Box 19. Distributions

the partnership’s adjusted basis of property

Code F. Dispositions of property with

other than money immediately before the

Code A. Cash and marketable securities.

section 179 deductions. The partnership

property was distributed to you. In addition,

Code A shows the distributions the

will report your distributive share of gain or

the partnership should report the adjusted

partnership made to you of cash and certain

loss on the sale, exchange, or other

basis and FMV of each property distributed.

marketable securities. The marketable

disposition of property for which a section

Decrease the adjusted basis of your interest

securities are included at their fair market

179 expense deduction was passed through

in the partnership by the amount of your

value (FMV) on the date of distribution

to partners with code F. If the partnership

basis in the distributed property. Your basis

(minus your share of the partnership’s gain

passed through a section 179 expense

in the distributed property (other than in

on the securities distributed to you). If the

deduction to its partners for the property,

liquidation of your interest) is the smaller of:

amount shown as code A exceeds the

•

you must report the gain or loss and any

The partnership’s adjusted basis

adjusted basis of your partnership interest

recapture of the section 179 expense

immediately before the distribution or

immediately before the distribution, the

•

deduction for the property on your income

The adjusted basis of your partnership

excess is treated as gain from the sale or

tax return (see the Instructions for Form

interest reduced by any cash distributed in

exchange of your partnership interest.

4797 for details). The partnership must

the same transaction.

Generally, this gain is treated as gain from

provide all the following information with

If you received the property in liquidation

the sale of a capital asset and should be

respect to a disposition of property for which

of your interest, your basis in the distributed

reported on the Schedule D for your return.

a section 179 expense deduction was

property is equal to the adjusted basis of

However, if you receive cash or property in

passed through to partners.

your partnership interest reduced by any

exchange for any part of a partnership

1. Description of the property.

cash distributed in the same transaction.

interest, the amount of the distribution

2. Date the property was acquired and

attributable to your share of the

If you contributed appreciated property to

placed in service.

partnership’s unrealized receivable or

the partnership within 5 years of a

3. Date of the sale or other disposition of

inventory items result in ordinary income

distribution of other property to you, and the

the property.

(see Regulations section 1.751-1(a) and

FMV of the other property exceeded the

4. Your distributive share of the gross

Sale or Exchange of Partnership Interest on

adjusted basis of your partnership interest

sales price or amount realized.

page 1). For details, see Pub. 541.

immediately before the distribution (reduced

5. Your distributive share of the cost or

The partnership will separately identify

by any cash received in the distribution), you

other basis plus the expense of sale

may have to recognize gain on the

both of the following.

(reduced as explained in the Instructions for

•

appreciated property. For property

The FMV of the marketable securities

Form 4797, line 21).

contributed after June 8, 1997, the 5-year

when distributed (minus your share of the

6. Your distributive share of the

gain on the securities distributed to you).

period is generally extended to 7 years. See

depreciation allowed or allowable,

•

The partnership’s adjusted basis of those

section 737 for details.

determined as described in the Instructions

securities immediately before the

If you receive cash or property in

for Form 4797, line 22, but excluding the

distribution.

exchange for any part of a partnership

section 179 expense deduction.

Decrease the adjusted basis of your

interest, the amount of the distribution

7. Your distributive share of the section

interest in the partnership (but not below

attributable to your share of the

179 expense deduction (if any) passed

zero) by the amount of cash distributed to

partnership’s unrealized receivable or

through for the property and the

you and the partnership’s adjusted basis of

inventory items result in ordinary income

partnership’s tax year(s) in which the

the distributed securities. Advances or

(see Regulations section 1.751-1(a) and

amount was passed through. To compute

drawings of money or property against your

Sale or Exchange of Partnership Interest on

the amount of depreciation allowed or

distributive share are treated as current

page 1).

allowable for Form 4797, line 22, add to the

-12-

Partner’s Instructions for Schedule K-1 (Form 1065)

Partner'S Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Deductions, Credits, Etc. (For Partner'S Use Only) - 2005 Page 12

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