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obtained by the due date (including extensions)

fund may take an increased deduction under

Retirement Plan. File this form for a plan that

of the fund’s return, or, if earlier, the date the

section 170(e)(6) for qualified contributions of

only covers the owner (or the owner and his or

return is filed. Do not attach the

computer technology or equipment for

her spouse) but only if the owner (or the owner

acknowledgment to the tax return, but keep it

educational purposes. Computer technology

and his or her spouse) owns the entire

with the fund’s records. These rules apply in

or equipment means computer software,

business.

addition to the filing requirements for Form

computer or peripheral equipment, and fiber

8283, Noncash Charitable Contributions,

optic cable related to computer use. A

Travel, meals, and entertainment. Subject to

described below.

contribution is a qualified contribution if:

the limitations and restrictions discussed

•

It is made to an eligible donee (see below);

below, the fund can deduct ordinary and

For more information on substantiation and

•

Substantially all the donee property’s use is:

necessary travel, meals, and entertainment

recordkeeping requirements, see the

expenses paid or incurred in its trade or

1. Related to the purpose or function of the

regulations under section 170 and Pub. 526,

business. Also, special rules apply to

donee,

Charitable Contributions.

deductions for gifts, skybox rentals, luxury

2. For use within the United States, and

Contributions to organizations

water travel, convention expenses, and

3. For educational purposes.

conducting lobbying activities. Contributions

entertainment tickets. For details, see section

•

The contribution is made not later than 3

made to an organization that conducts lobbying

274 and Pub. 463, Travel, Entertainment, Gift,

years after the date the taxpayer acquired or

activities are not deductible if:

and Car Expenses.

•

substantially completed the construction of the

The lobbying activities relate to matters of

property;

direct financial interest to the donor’s trade or

•

Travel. The fund cannot deduct travel

The original use of the property is by the

business and

expenses of any individual accompanying a

•

donor or the donee;

The principal purpose of the contribution was

corporate officer or employee, including a

•

The property is not transferred by the donee

to avoid Federal income tax by obtaining a

spouse or dependent of the officer or

for money, services, or other property, except

deduction for activities that would have been

employee, unless:

for shipping, transfer, and installation costs;

nondeductible under the lobbying expense

•

That individual is an employee of the

The property fits productively into the

rules if conducted directly by the donor.

corporation and

donee’s education plan; and

Contributions of property other than

•

His or her travel is for a bona fide business

cash. If the fund contributes property other

The property meets standards, if any, that

purpose and would otherwise be deductible by

than cash and claims over a $500 deduction

may be prescribed by future regulations, to

that individual.

for the property, it must attach a schedule to

assure it meets minimum functionality and

the return describing the kind of property

suitability for educational purposes.

Meals and entertainment. Generally, the

contributed and the method used to determine

fund can deduct only 50% of the amount

its fair market value (FMV). Closely held funds

Eligible donee. The term “eligible donee”

otherwise allowable for meals and

means:

must complete Form 8283 and attach it to their

entertainment expenses paid or incurred in its

returns. All other funds generally must

trade or business. In addition (subject to

•

An educational organization that normally

complete and attach Form 8283 to their returns

exceptions under section 274(k)(2)):

maintains a regular faculty and curriculum and

for contributions of property (other than money)

•

Meals must not be lavish or extravagant;

has a regularly enrolled body of pupils in

if the total claimed deduction for all property

•

attendance at the place where its educational

contributed was more than $5,000.

A bona fide business discussion must occur

activities are regularly conducted,

during, immediately before, or immediately

•

If the fund made a “qualified conservation

after the meal; and

A section 501(c)(3) entity organized primarily

contribution” under section 170(h), also include

•

for purposes of supporting elementary and

An employee of the fund must be present at

the FMV of the underlying property before and

secondary education, or

the meal.

after the donation, as well as the type of legal

•

A public library (as described in section

interest contributed, and describe the

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

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

applies to expenses for meals consumed by

conservation purpose benefited by the

donation. If a contribution carryover is included,

individuals subject to the hours of service limits

Exceptions. The following exceptions

show the amount and how it was determined.

of the Department of Transportation.

apply to the above rules for computer

technology and equipment:

Reduced deduction for contributions of

•

Membership dues. The fund may deduct

Contributions to private foundations may

certain property. For a charitable contribution

amounts paid or incurred for membership dues

qualify if the foundation contributes the

of property, the fund must reduce the

in civic or public service organizations,

property to an eligible donee within 30 days

contribution by the sum of:

•

professional organizations, business leagues,

after the contribution and notifies the donor of

The ordinary income and short-term capital

trade associations, chambers of commerce,

the contribution. For more details, see section

gain that would have resulted if the property

boards of trade, and real estate boards.

170(e)(6)(C).

were sold at its FMV, and

•

However, no deduction is allowed if a principal

For contributions of property reacquired by

For certain contributions, the long-term

purpose of the organization is to entertain, or

the manufacturer of the property, the 3-year

capital gain that would have resulted if the

provide entertainment facilities for, members or

period begins on the date that the original

property were sold at its FMV.

their guests. In addition, the fund may not

construction of the property was substantially

The reduction for the long-term capital gain

deduct membership dues in any club organized

completed. Also, the original use of the

applies to:

for business, pleasure, recreation, or other

•

property may be by someone other than the

Contributions of tangible personal property

social purpose.

donor or the donee.

for use by an exempt organization for a

purpose or function unrelated to the basis for

Pension, profit-sharing, etc., plans. Also

Entertainment facilities. The fund cannot

its exemption and

•

include on line 22 the deduction for

deduct an expense paid or incurred for a

Contributions of any property to or for the

contributions to qualified pension,

facility (such as a yacht or hunting lodge) used

use of certain private foundations except for

profit-sharing, or other funded-deferred

for an activity usually considered

stock for which market quotations are readily

compensation plans. Employers who maintain

entertainment, amusement, or recreation.

available (section 170(e)(5)).

such a plan generally must file one of the forms

Larger deduction. A larger deduction is

listed below, even if the plan is not a qualified

Note: The fund may be able to deduct

allowed for certain contributions of:

plan under the Internal Revenue Code. The

•

otherwise nondeductible meals, travel, and

Inventory and other property to certain

filing requirement applies even if the fund does

entertainment expenses if the amounts are

organizations for use in the care of the ill,

not claim a deduction for the current tax year.

treated as compensation and reported on Form

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

There are penalties for failure to file these

W-2 for an employee or on Form 1099-MISC

Regulations section 1.170A-4A);

forms on time and for overstating the pension

•

for an independent contractor.

Scientific equipment used for research to

plan deduction. See sections 6652(e) and

institutions of higher learning or to certain

Deduction for clean-fuel vehicles and

6662(f).

scientific research organizations (other than by

certain refueling property. Section 179A

personal holding companies and service

allows a deduction for part of the cost of

Form 5500, Annual Return/Report of

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

qualified clean-fuel vehicle property and

Employee Benefit Plan. File this form for a plan

•

Computer technology and equipment for

qualified clean-fuel vehicle refueling property

that is not a one-participant plan (see below).

educational purposes.

placed in service during the tax year. For more

Contributions of computer technology

information, see Pub. 535, Business

Form 5500-EZ, Annual Return of

Expenses.

and equipment for educational purposes. A

One-Participant (Owners and Their Spouses)

-8-

Instructions For Form 1120-Ric - U.s. Income Tax Return For Regulated Investment Companies - 2003 Page 8

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