Shareholder'S Instructions For Schedule K-1 (Form 1120s)

Line 12a — Credit for Alcohol Used as

to the left of line 40, write ‘‘CCF’’ and the

tax return. See section 29 for rules on how to

amount of the deduction.

figure the credit.

Fuel

•

If the corporation has more than one

Qualified electric vehicle credit (Form 8834).

Your share of the corporation’s credit for

•

corporate activity (line 1, 2, or 3 of Schedule

Unused credits from cooperatives.

alcohol used as fuel from all trade or business

•

K-1), it will identify the activity to which the

Work opportunity credit (Form 5884).

activities is reported on line 12a. Enter this

expenses relate.

•

credit on Form 6478, Credit for Alcohol Used

Welfare-to-work credit (Form 8861).

•

as Fuel, to determine your allowed credit for

Credit for increasing research activities

The corporation should also give you a

the year.

(Form 6765).

description and your share of each of the

•

expense items. Associate any passive activity

Enhanced oil recovery credit (Form 8830).

Line 12b — Low-Income Housing Credit

•

deduction included on line 10 with the line 1, 2,

Disabled access credit (Form 8826).

Your share of the corporation’s low-income

•

or 3 activity to which it relates and report the

Renewable electricity production credit

housing credit is shown on lines 12b(1) and

deduction using the Instructions for Form 8582

(Form 8835).

12b(2). Use Form 8586, Low-Income Housing

•

(or only on Schedule E (Form 1040), if

Empowerment zone and renewable

Credit, to determine your allowed credit for the

applicable).

community employment credit (Form 8844).

year.

•

Indian employment credit (Form 8845).

If the corporation invested in a partnership

Investment Interest

•

Credit for employer social security and

to which the provisions of section 42(j)(5)

If the corporation paid or accrued interest on

Medicare taxes paid on certain employee tips

apply, it will report separately on line 12b(1)

debts properly allocable to investment

(Form 8846).

your share of the credit it received from the

•

property, the amount of interest you are

Orphan drug credit (Form 8820).

partnership.

•

allowed to deduct may be limited.

New markets credit (Form 8874).

Your share of all other low-income housing

•

Credit for small employer pension plan

For more information on the special

credits of the corporation is reported on line

startup costs (Form 8881).

provisions that apply to investment interest

12b(2). You must keep a separate record of

•

Credit for employer-provided child care

expense, see Form 4952, Investment Interest

the amount of low-income housing credit from

facilities and services (Form 8882).

Expense Deduction, and Pub. 550, Investment

these lines so that you will be able to correctly

•

New York Liberty Zone business employee

Income and Expenses.

figure any recapture of the credit that may

credit (Form 8884).

result from the disposition of all or part of your

•

Line 11a — Interest Expense on

Credit for contributions to selected

stock in the corporation. For more information,

Investment Debts

community development corporations (Form

see the instructions for Form 8611, Recapture

8847).

of Low-Income Housing Credit.

Enter this amount on Form 4952, line 1, along

•

General credits from an electing large

with investment interest expense from

Line 12c — Qualified Rehabilitation

partnership. Report these credits on Form

Schedule K-1, line 10, if any, and from other

Expenditures Related to Rental Real

3800, line 1r.

sources to determine how much of your total

•

Estate Activities

Qualified zone academy bond credit (Form

investment interest is deductible.

8860).

The corporation should identify your share of

Lines 11b(1) and (2) — Investment

rehabilitation expenditures from each rental

Income and Investment Expenses

real estate activity. Enter the expenditures on

Adjustments and Tax Preference

the appropriate line of Form 3468, Investment

Items

Use the amounts on these lines to determine

Credit, to figure your allowable credit.

the amounts to enter in Part II of Form 4952.

Use the information reported on lines 14a

Line 12d — Credits (Other Than Credits

through 14e (as well as adjustments and tax

The amounts shown on lines 11b(1)

Shown on Lines 12b and 12c) Related

preference items from other sources) to

and 11b(2) include only investment

to Rental Real Estate Activities

prepare your Form 6251, Alternative Minimum

income and expenses reported on lines

CAUTION

Tax — Individuals, or Schedule I of Form 1041,

The corporation will identify the type of credit

4a, 4b(2), 4c, 4f, and 9 of this Schedule K-1. If

U.S. Income Tax Return for Estates and

and any other information you need to figure

applicable, the corporation will have listed in

Trusts.

credits from rental real estate activities (other

the line 23 Supplemental Information space

than the low-income housing credit and

any other items of investment income and

Lines 14d(1) and 14d(2) — Gross

qualified rehabilitation expenditures).

expenses reported elsewhere on this Schedule

Income From, and Deductions

K-1. Be sure to take these amounts into

Line 12e — Credits Related to Other

Allocable to, Oil, Gas, and Geothermal

account, along with the amounts on lines

Rental Activities

Properties

11b(1) and 11b(2) and your investment income

If applicable, your share of any credit from

and expenses from other sources, when

The amounts reported on these lines include

other rental activities will be reported on line

figuring the amounts to enter in Part II of Form

only the gross income from, and deductions

12e. Income or loss from these activities is

4952.

allocable to, oil, gas, and geothermal

reported on line 3 of Schedule K-1. If more

properties included on line 1 of Schedule K-1.

than one credit is involved, the credits will be

Credits

The corporation should have reported

listed separately, each credit identified as a line

separately any income from or deductions

12e credit, and the activity to which the credit

allocable to such properties that are included

If you have credits that are passive

relates will be identified. This information will

on lines 2 through 10. This separate

activity credits to you, you must

be shown on the line 23 Supplemental

information is reported in the line 23

complete Form 8582-CR in addition to

CAUTION

Information space. The credit may be limited

Supplemental Information space. Use the

the credit forms identified below. See the

by the passive activity limitations.

amounts reported on lines 14d(1) and 14d(2)

Instructions for Form 8582-CR for more

and any amounts reported separately to help

information.

Line 13 — Other Credits

you determine the net amount to enter on line

If applicable, your pro rata share of any other

Also, if you are entitled to claim more than

25 of Form 6251.

credit (other than on lines 12a through 12e) will

one listed general business credit (investment

be shown on line 13. If more than one credit is

credit, work opportunity credit, welfare-to-work

Line 14e — Other Adjustments and Tax

reported, the credits will be shown and

credit, credit for alcohol used as fuel, research

Preference Items

identified in the line 23 Supplemental

credit, low-income housing credit, enhanced oil

Enter the line 14e adjustments and tax

Information space. Expenditures qualifying for

recovery credit, disabled access credit,

preference items shown in the line 23

the (a) rehabilitation credit from other than

renewable electricity production credit, Indian

Supplemental Information space, with other

rental real estate activities, (b) energy credit, or

employment credit, credit for employer social

items from other sources, on the applicable

security and Medicare taxes paid on certain

lines of Form 6251.

on line 23.

employee tips, orphan drug credit, new

markets credit, credit for small employer

Line 13 credits include the following:

•

Foreign Taxes

pension plan startup costs, credit for

Credit for backup withholding on dividends,

employer-provided child care facilities and

interest income, and other types of income.

Use the information on lines 15a through 15h

services, and credit for contributions to

Include the amount the corporation reports to

and attached schedules to figure your foreign

selected community development

you in the total that you enter on Form 1040,

tax credit. For more information, see Form

corporations), you must complete Form 3800,

line 61.

1116, Foreign Tax Credit (Individual, Estate,

•

General Business Credit, in addition to the

Nonconventional source fuel credit. Enter

Trust, or Nonresident Alien Individual), and its

credit forms identified. If you have more than

this credit on a schedule you prepare yourself

instructions. Also see Pub. 514, Foreign Tax

one credit, see the Instructions for Form 3800.

to determine the allowed credit to take on your

Credit for Individuals.

-6-

Instructions for Schedule K-1 (Form 1120S)

Shareholder'S Instructions For Schedule K-1 (Form 1120s) - 2003 Page 6

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