Instructions For Form 8804-W - 2009 (Page 3 of 4) in pdf

may be annualized using the general

from line 14. See Extraordinary items on

entered on lines 30e, 30i, and 30m,

rules of Regulations section 1.6655-2(f),

page 2.

respectively. See section 1(h) and Notice

or, if the partnership chooses, may be

97-59, 1997-45 I.R.B. 7, for rules for

Line 22

taken into account after annualizing the

netting gains and losses.

Enter the reduction to the line 21c amount

effectively connected taxable income for

Line 31—Annualization

for state and local taxes under

the annualization period.

Regulations section 1.1446-6(c)(1)(iii) and

Amounts

for valid certificates received from the

Part II—Adjusted Seasonal

Enter the annualization amounts for the

foreign partner under Regulations section

option used on line 29. For example, if the

Installment Method

1.1446-6. See Certification of Deductions

partnership elects Option 1, enter on line

and Losses in the Instructions for Forms

Note. Part II does not reflect the lower

31 the annualization amounts 6, 3,

8804, 8805, and 8813 for additional

preferential rates permitted under

1.71429, and 1.2, in columns (a) through

information.

Regulations section 1.1446-3(a)(2).

(d), respectively.

These were omitted because, for most

Part III—Annualized

1st

2nd

3rd

4th

taxpayers, the income reported in Part II

Installment Installment Installment Installment

will be predominantly (or exclusively)

Income Installment Method

Standard

ordinary income. If the partnership wishes

Option

1.33333

to consider lower preferential rates for

Line 29—Annualization Periods

Part II (and if the requirements outlined in

Option 1

1.71429

1.2

Enter in the space on line 29, columns (a)

the Note in the line 30 instructions are

Option 2

2.4

1.5

1.09091

through (d), respectively, the

met), it must attach a schedule which

annualization periods that the partnership

appropriately expands lines 14 and 21

is using, based on the options listed

Lines 32a, 32e, 32i, and 32m

through 24 to show the applicable special

below. For example, if the partnership

types of income or gain and the

If the partnership has certain

elects Option 1, enter on line 29 the

applicable percentages (see, for example,

extraordinary items that total $1 million or

annualization periods 2, 4, 7, and 10, in

lines 32 and 33 of this schedule).

more from a particular transaction, or a

columns (a) through (d), respectively.

section 481(a) adjustment, special rules

Complete this part only if the

Use Option 1 or Option 2 only if

apply. Include these amounts on line 32a,

partnership’s base period percentage for

the partnership elected to use one

32e, 32i, or 32m, depending upon the

any 6 consecutive months of the tax year

of these options by filing Form

type of income against which the item

CAUTION

equals or exceeds 70%. Figure the base

8842, Election To Use Different

applies, for the appropriate period. Also

period percentage using the 6-month

Annualization Periods for Corporate

include on line 32a, 32e, 32i, or 32m the

period in which the partnership normally

Estimated Tax, on or before the due date

de minimis extraordinary items that the

receives the largest part of its ECTI. The

of the first required installment payment.

partnership chooses to exclude from line

base period percentage for any period of

Once made, the election is irrevocable for

30a, 30b, 30c, or 30d, respectively. See

6 consecutive months is the average of

the particular tax year.

Extraordinary items on page 2.

the three percentages figured by dividing

the ECTI for the corresponding

Lines 32b, 32f, 32j, and 32n

1st

2nd

3rd

4th

6-consecutive-month period in each of the

Installment Installment Installment Installment

Enter the reduction amounts for state and

3 preceding tax years by the ECTI for

Standard

local taxes under Regulations section

each of their respective tax years.

Option

1.1446-6(c)(1)(iii). See Reductions for

Example. An amusement park with a

Option 1

State and Local Taxes in the Instructions

calendar year as its tax year receives the

for Forms 8804, 8805, and 8813 for

Option 2

largest part of its ECTI during a 6-month

additional information. The netting rules

period, May through October. To compute

under section 1(h) and Notice 97-59 must

Line 30—Foreign Partner’s

its base period percentage for this

be considered in determining the category

Allocable Share of ECTI

6-month period, the amusement park

of income the reduction amounts offset.

figures its ECTI for each May – October

Enter on lines 30a through 30d the

period in 2006, 2007, and 2008. It then

Lines 32c, 32g, 32k, and 32o

foreign partner’s allocable share of ECTI

divides the ECTI for each May – October

for the months entered for each

Enter the reduction amounts resulting

period by the total ECTI for that particular

annualization period in columns (a)

from certified partner-level items received

tax year. The resulting percentages are

through (d) on line 29. To determine the

from foreign partners using Form 8804-C.

69% (.69) for May – October 2006, 74%

foreign partner’s allocable share of ECTI,

See Certification of Deductions and

(.74) for May – October 2007, and 67%

see Effectively Connected Taxable

Losses in the Instructions for Forms 8804,

(.67) for May – October 2008. Because the

Income in the Instructions for Forms

8805, and 8813 for additional information.

average of 69%, 74%, and 67% is 70%,

8804, 8805, and 8813.

The netting rules under section 1(h) and

the base period percentage for May

Notice 97-59 must be considered in

If the partnership has certain

through October 2009 is 70%. Therefore,

determining the category of income the

extraordinary items, special rules apply.

the amusement park qualifies for the

reduction amounts offset.

Do not include on line 30a, 30b, 30c, or

adjusted seasonal installment method.

30d the de minimis extraordinary items

Part IV—Required

that the partnership chooses to include on

Line 14

line 32a, 32e, 32i, or 32m, respectively.

Installments Under Part II

If the partnership has certain

See Extraordinary items on page 2.

extraordinary items, special rules apply.

and/or Part III

Note. With respect to lines 30b through

Do not include on line 14 the de minimis

30d, enter the specified types of ECTI if

extraordinary items that the partnership

Line 37

(a) such partner would be entitled to use

chooses to include on line 21b. See

a preferential rate on such income or gain

Extraordinary items on page 2.

Before completing line 37 in columns (b)

(see Regulations section 1.1446-3(a)(2))

through (d), complete lines 38 through 42

Line 21b

and (b) the partnership has sufficient

in each of the preceding columns. For

documentation to meet the requirements

example, complete lines 38 through 42 in

If the partnership has certain

of Regulations section 1.1446-3(a)(2)(ii).

column (a) before completing line 37 in

extraordinary items of $1 million or more

column (b).

from a transaction, or a section 481(a)

If the partnership has net ordinary loss,

adjustment, special rules apply. Include

net short-term capital loss, or net 28%

Line 42—Required Installments

these amounts on line 21b for the

rate loss, each net loss should be netted

appropriate period. Also, include on line

against the appropriate categories of

For each installment, enter the smaller of

21b the de minimis extraordinary items

income and gain to determine the

line 38 or line 41 on line 42. Also enter

that the partnership chooses to exclude

amounts of income and gain to be

the result on line 10.

-3-

Instructions For Form 8804-W - 2009 Page 3

Related Articles

Related forms

Related Categories