Instructions For Schedule A (Form 8804) - 2008 (Page 3 of 4) in pdf

Line 22b. If the partnership has certain

preferential rate on such income or gain

Lines 33c, 33g, 33k, and 33o. Enter the

extraordinary items of $1 million or more

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

reduction amounts resulting from certified

from a transaction, or a section 481(a)

and (b) the partnership has sufficient

partner-level items received from foreign

adjustment, special rules apply. Include

documentation to meet the requirements

partners using Form 8804-C. See

these amounts on line 22b for the

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

Certification of Deductions and Losses in

appropriate period. Also include on line

the Instructions for Forms 8804, 8805,

If the partnership has net ordinary loss,

22b the de minimis extraordinary items

and 8813 for additional information. The

net short-term capital loss, or net 28%

that the partnership chooses to exclude

netting rules of section 1(h) and Notice

rate loss, each net loss should be netted

from line 15. See Extraordinary items

97-59 must be considered in determining

against the appropriate categories of

above.

the category of income the reduction

income and gain to determine the

amounts offset.

Line 23. Enter the amount by which line

amounts of income and gain to be

22c is being reduced for state and local

entered on lines 31b, 31c, and 31d,

taxes under Regulations section

respectively. See section 1(h) and Notice

Part VI. Required

1.1446-6(c)(1)(iii) and for certified foreign

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

Installments

partner-level items submitted using Form

netting gains and losses.

8804-C. See Reductions for State and

Line 32. Annualization amounts. Enter

Line 38. Before completing line 38 in

Local Taxes and Certification of

on line 32, columns (a) through (d),

columns (b) through (d), complete lines

Deductions and Losses in the Instructions

respectively, the annualization amounts

39 through 43 in each of the preceding

for Forms 8804, 8805, and 8813 for

shown in the tables below for the option

columns. For example, complete lines 39

additional information.

used for line 30. For example, if the

through 43 in column (a) before

partnership elected Option 1, enter on line

completing line 38 in column (b).

Part V. Annualized Income

32 the annualization amounts 6, 3,

Installment Method

Line 43. For each installment, enter the

1.71429, and 1.2, in columns (a) through

smaller of line 39 or line 42 on line 43.

(d), respectively.

Line 30. Annualization periods. Enter

Also enter the result on line 5.

on line 30, columns (a) through (d),

1st

2nd

3rd

4th

respectively, the annualization periods for

Installment Installment Installment Installment

Part VII. Figuring the

the option listed below. For example, if

Standard

the partnership elected Option 1, enter on

Option

1.33333

Penalty

line 30 the annualization periods 2, 4, 7,

Option 1

1.71429

1.2

Complete Part VII to determine the

and 10, in columns (a) through (d),

amount of the penalty. The penalty is

Option 2

2.4

1.5

1.09091

respectively.

figured for the period of underpayment

Use Option 1 or Option 2 only if

using the underpayment rate determined

Lines 33a, 33e, 33i, and 33m. If the

the partnership elected to do so by

under section 6621(a)(2). The period of

partnership has extraordinary items that

filing Form 8842, Election To Use

CAUTION

underpayment runs from the installment

total $1 million or more from a particular

Different Annualization Periods for

due date to the earlier of the date the

transaction, or a section 481(a)

Corporate Estimated Tax, by the due date

underpayment is actually paid or the 15th

adjustment, special rules apply. Include

of the first required installment payment.

day of the fourth month after the close of

these amounts on line 33a, 33e, 33i, or

Once made, the election is irrevocable for

the 2008 tax year (the 15th day of the

33m, depending on the type of income

the particular tax year.

sixth month if the partnership keeps its

against which the item applies, for the

books and records outside the United

appropriate period. Also include on line

1st

2nd

3rd

4th

States and Puerto Rico). For information

33a, 33e, 33i, or 33m the de minimis

Installment Installment Installment Installment

on obtaining the interest rate on

extraordinary items that the partnership

Standard

underpayments paid after June 30, 2009,

chooses to exclude from line 31a, 31b,

Option

see the footnote on page 5 of the

31c, or 31d, respectively. See

Option 1

schedule.

Extraordinary items on page 2.

Option 2

If the partnership has included on line

Example. A partnership underpaid the

33a, 33e, 33i, or 33m any of the items

April 15 installment by $1,000. The June

Line 31. Enter on lines 31a through 31d

referred to in the previous paragraph,

15 installment requires a payment of

the ECTI allocable to all foreign partners

write “EI” and the dollar amount of the

$2,500. On June 11, the partnership

for the months entered for each

item next to the affected line. Attach a

deposits $2,500 to cover the June 15

annualization period in columns (a)

schedule which shows the income for that

installment. However, $1,000 of this

through (d) on line 30.

line before the extraordinary item, the

payment is applied against the April 15

amount of the extraordinary item, and the

If the partnership has certain

installment. The penalty for the April 15

net amount. Also include an explanation

extraordinary items, special rules apply.

installment is figured to June 11 (57

of the item, including the authority under

Do not include on line 31a, 31b, 31c, or

days). The remaining $1,500 is applied to

which it is being claimed.

31d the de minimis extraordinary items

the June 15 installment as if it were made

that the partnership chooses to include on

Lines 33b, 33f, 33j, and 33n. Enter the

on June 15.

line 33a, 33e, 33i, and 33m, respectively.

reduction amounts for state and local

See Extraordinary items on page 2.

If the partnership has made more than

taxes under Regulations section

one payment for a required installment,

With respect to lines 31b through 31d,

1.1446-6(c)(1)(iii). The netting rules under

attach a separate computation for each

enter the specified types of income

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

allocable to noncorporate partners if (a)

considered in determining the category of

payment.

such partners would be entitled to use a

income the reduction amounts offset.

-3-

Instructions For Schedule A (Form 8804) - 2008 Page 3

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